Question : Multiple choice 31.Firms that grant substantial decision-making authority to the managers : 1302895

Multiple choice

31.Firms that grant substantial decision-making authority to the managers of subunits are referred to as

A.residual organizations.

B.profit centers.

C.responsibility organizations.

D.decentralized organizations.

32.Which of the following determines the level of decentralization in a company?

A.The diversity of the company’s products

B.The number of levels of employees and management in the company

C.The extent of decision-making authority given to the subunit managers

D.The globalization of the company’s sales

33.Which of the following is not an advantage of decentralization of a company?

A.Subunit managers have better information.

B.Subunit managers will act to benefit the organization as a whole.

C.Subunit managers can respond quicker to changing circumstances.

D.Subunit managers receive training helpful to future transition into top-level management positions.

34.Which of the following is an advantage of a decentralized organization?

A.Allows for duplication of activities

B.Enables managers to enhance goal incongruence

C.Provides excellent training forpotential top-level executives

D.Allows only top-level managers to make all decisions

35.Which of the following is a disadvantage of a decentralized organization?

A.Managers’ goals are congruent with the goals of the company as a whole.

B.Some activities may be duplicated and incur unnecessary costs.

C.Managers with the highest authoritymay takeinappropriate decisions.

D.Managers may take more time to respond to changing circumstances.

36.Goal congruence refers to the match between

A.locations of manufacturing plants and customers.

B.goalsbased on profits and those based on return on investment.

C.number of units produced and number of units sold.

D.goals of the individual managers and those of the company as a whole.

37.Companies evaluate performance of subunits and subunit managers in order to

A.identify successful operations.

B.influence the behavior of managers.

C.determine areas that need improvement.

D.Allof these answer choices are correct.

38.The evaluation of a subunit should be separated from the evaluation of the subunit’s manager because

A.a subunit always shows better performance.

B.an excellent manager may be doing the best job possible in a poor subunit.

C.poor performance by managers may cause subunits to perform poorly.

D.GAAP requires separate evaluations of managers and the respective subunits.

39.For what does responsibility accounting hold managers responsible?

A.All costs charged to a manager’ssubunit

B.All costs charged to a manager’s subunit plus a share of company-wide fixed costs

C.Only the costs thata manager can control

D.Only the costs thata manager have personally approved

40.If a company uses responsibility accounting, a shift supervisor in the Austinproduction plant should be held responsible for

A.all costs associated with the Austinplant.

B.direct costs incurred on the supervisor’s shift.

C.a share of all of the company’s costs.

D.direct material, direct labor, and all manufacturing overhead incurred on the supervisor’s shift.