Which of the following is False concerning profit centres and cost centres?
A) A profit centre can exist within a centralized organization.
B) A profit centre can exist within a decentralized organization.
C) A cost centre can exist within a centralized organization.
D) A cost centre can exist within a decentralized organization.
E) If a profit centre exists within a centralized organization, there cannot be any cost centres in the organization.
Correct Answer:
Verified
Q3: The goal of a management control system
Q3: A management control system would include both
Q4: Management control systems reflect only financial data.
Q5: A management control system should have all
Q9: A decentralized organizational structure may result in
Q9: Motivation is the desire to attain a
Q15: A benefit of decentralization should be increased
Q17: The costs of decentralization include all of
Q18: A well-designed management control system obtains all
Q18: Effort in terms of management control systems
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