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Multiple Choice Quiz_Chapter12 -...

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Multiple Choice Quiz (See related pages) 1 Which of the following is  NOT  an advantage of decentralization? A) Faster response B) Better use of local knowledge C) Reduction of problems to manageable size D) Lower cost of monitoring and controlling the activities of local managers E) All of the above are advantages of decentralization 2 A (an) ________________ is designed to influence subordinates to act in the organization's interest. A) decentralized system B) management control system C) centralized system D) accounting system E) none of the above 3 The study of how firms are structured and operated is called: A) management evaluation analysis B) corporate efficiency analysis C) organizational economics D) corporate environmental analysis E) none of the above 4 Management control systems consist of three elements. Which of the following is NOT one of those elements? A) Delegated decision authority B) Performance evaluation and measurement systems C) Compensation and reward decision D) Dysfunctional decision making E) None of the above 5 Responsibility accounting classifies organization units into centers based on decision authority delegated to the  center's manager. Which of the following is NOT a type of center classification? A) Cost centers
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B) Revenue centers C) Profit centers D) Investment centers E) All of the above are types of center classification 6
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