An investment center is always a decentralized

This preview shows page 8 - 11 out of 58 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Information Technology Project Management
The document you are viewing contains questions related to this textbook.
Chapter 2 / Exercise 1
Information Technology Project Management
Schwalbe
Expert Verified
11) An investment center is always a decentralized subunit.
Diff: 2Objective: 2AACSB: Analytical thinking
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Information Technology Project Management
The document you are viewing contains questions related to this textbook.
Chapter 2 / Exercise 1
Information Technology Project Management
Schwalbe
Expert Verified
12) In a profit center, the manager is accountable for investments, revenues, and costs.
Diff: 2Objective: 2AACSB: Analytical thinking13) Decisions regarding sources of long-term financing are best made at subunit level as the subunit has local knowledge and can leverage it in negotiations.
Diff: 2Objective: 2AACSB: Analytical thinking14) Surveys indicate that decisions made most frequently at the corporate level are related to sources of supplies and products to manufacture.
Explanation: These decisions are made at a decentralized level.Diff: 2Objective: 2AACSB: Analytical thinking15) The labels profit center and cost center are dependent on the degree of centralization or decentralization in a company.
Diff: 1Objective: 2AACSB: Analytical thinking16) Incongruent decision making occurs when individuals and groups work toward achieving the organization's goals even if departmental performance is adversely affected.
Diff: 2Objective: 2AACSB: Analytical thinking
17) For each of the following activities, characteristics, and applications, identify whether they can be found in a centralized organization, a decentralized organization, or both types of organizations. ________a.Freedom for managers at lower organizational levels to make decisions________b.Gathering information may be very expensive________c.Greater responsiveness to user needs________d.Have few interdependencies among divisions________e.Maximum constraints and minimum freedom for managers at lowest levels________f.Maximization of benefits over costs________g.Minimization of duplicate functions________h.Minimum of suboptimization________i.Multiple responsibility centers with various reporting units________j.Profit centers Answer: a. Decentralizationb. Decentralizationc. Decentralizationd. Decentralizatione. Centralizationf.Bothg. Centralizationh. Centralizationi.Bothj.Both Diff: 2Objective: 2AACSB: Analytical thinking

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture