1. Separation of businesses into more manageable operating units is termed centralization.

You are watching: Separation of businesses into more manageable operating units is termed decentralization.

2. The procedure of measuring and also reporting operating data by areas of obligation is termed responsibility accounting.

3. A decentralized company organization is one in i m sorry all major planning and operating decisions room made by optimal management.

4. The major disadvantage of decentralized operations is the decisions made by one manager may impact other managers in such a way that the profit of the entire firm may suffer.

5. A centralized business company is one in i m sorry all significant planning and operating decisions room made by height management.

6. The 3 common varieties of obligation centers are referred to as cost centers, benefit centers, and also segment centers.


7. A responsibility center in which the department manager has actually responsibility for and also authority over costs in the room is termed a cost center.

8. A responsibility facility in which the authority over and responsibility for costs and also revenues is vested in the room manager is termed an investment center.

9. Budget plan performance reports ready for the vice-president of manufacturing would generally contain less information than reports ready for the various plant managers.

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10. The amount of detail presented in a budget performance report because that a cost facility depends upon the level of administration to which the report is directed.


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