Posted: July 19th, 2016

The practice of delegating authority and responsibility is referred to as?

Responsibility Center Description Type of Responsibility Center
1) Atlanta office of an investment banking services firm
2) Birmingham location of a major retail furniture chain
3) Cadillac division of General Motors
4) Casting department of a small steel mill
5) Customer complaint center at Delta Airlines
6) Check clearing department in a bank operations center
7) Finishing department of a manufacturing plant that makes precision cutting instruments
8) Gulfstream Aerospace unit (maker of business jets) of General Dynamics Corporation
9) Home electronics division of Sony Corporation
10) Maintenance department in an automobile assembly plant
11) Medical diagnostic equipment unit of Hewlett Packard Company
12) Restaurant in a Macy’s department store

Problem #7
Choose the correct answer:

1 – The practice of delegating authority and responsibility is referred to as.

decentralization.
standard costing.
management by exception.
centralization of authority

2 – Contribution margin would be one of the most important measurements used in
evaluating the performance of a

cost center.
profit center.
organizational center
Investment Center

3 – A budget prepared at a single volume of activity is referred to as a