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