1. Which of the following would not be an advantage of decentralization?
A. Duplication of effort is minimized
B. Companies can develop their own managers internally by giving lower-level managers practice in developing their decision-making skills.
C. Top management is free to focus on the long-term strategies of the organization.
D. All of these answer choices are advantages of decentralization.

2. Which of the following would not be a focus of top managers in a decentralized organizational structure?
A. Long-range projections
B. Corporate goals
C. Day-to-day operational issues
D. All of these answer choices would be focuses of top management.

3. The packaging department in a large manufacturing company would be classified as a
A. Cost center
B. Profit center
C. Investment center

4. Which of the following is a reason why top managers would decide to increase the level of decentralized decision-making authority in their company?
A. Managers at the operational level can respond to issues more quickly than top management.
B. Top managers want to give attention to grooming the next generation of top managers.
C. Managing an organization is a time-consuming function.
D. All of these answer choices are correct.

5. In a responsibility accounting environment, upper managers evaluate the performance of the unit managers based
A. On those items over which the unit managers have control.
B. Not only on cost, but also on revenues.
C. On the overall profit of the organization
D. None of these answer choices of correct.

6. In a responsibility accounting environment, which of the following is not a classification of organizational units?
A. Cost centers
B. Revenue centers
C. Profit centers
D. Investment centers

7. In a responsibility accounting environment, which of the following managers is considered to have the broadest responsibility?
A. Cost center manager
B. Profit center manager
C. Investment center manager
D. Revenue center manager

8. In a responsibility accounting environment, which of the following managers has his or her performance typically measured based on the unit’s overall profit compared to the flexible budget?
A. Cost center manager
B. Profit center manager
C. Investment center manager
D. Revenue center manager

Answer rating: 100% (QA)

1Decentralization means sharing responsibilities to lower levels when powers and responsibilities fl... View the full answer