Decentralized firms can delegate authority by structuring an organization into responsibility centers. Which of the following organizational segments is most like a totally independent, standalone business where managers are expected to "make it on their own"?
A. Cost center.
B. Investment center.
C. Revenue center.
D. Contribution center.
E. Profit center.
Answer: B
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A manufacturer of audio equipment employing an activity-based cost hierarchy uses the unit, batch, product, and facility levels to classify its activities. A unit-level activity is
a. redesigning the process. b. setting up the production process. c. testing the product. d. insuring the factory.
Discuss long-term performance plans for managerial personnel.
What will be an ideal response?
A corporation is sometimes called an artificial person
a. True b. False
When preparing the worksheet for a merchandising business using the perpetual inventory system, the Merchandise Inventory account must be adjusted based on a physical count due to inventory shrinkage
Indicate whether the statement is true or false