Solution-Which center is almost like an independent business

Which center is almost like an independent business

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Reference no: EM132959396

Problem 1: Decentralized firms can delegate authority, retain control and monitor manager's performance by structuring the organization into responsibility centers. Which center is almost like an independent business?

a. Revenue center c. Cost center

b. Profit center d. Investment center

Problem 2: A management decision may be beneficial for a given profit center but not for the entire company. From the over-all company viewpoint, this decision leads to

a. Sub-optimization c. Goal congruence

b. Centralization d. Maximization

Problem 3: In responsibility accounting, a center's performance is measured by controllable costs. Controllable costs are best describe as including

a. Direct material and direct labor only

b. Only those costs that the manager can influence in the current time period

c. Only discretionary costs

d. Those costs about which the manager is knowledge and informed

Reference no: EM132959396

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Which center is almost like an independent business

Reference no: EM132959396

Reference no: EM132959396

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