Chapter 9: Responsibility accounting and performance evaluation Flashcards
1
Q
Centralized company
A
Major planning and decisions are made by top managers
2
Q
Decentralized Company
A
Divided into segments, with segment managers making planning and controlling decisions for their segments
Advantages: Frees up top management time
-supports the use of the expert knowledge and improves customer relation
-motivation
-providing training
Disadvantages
-duplication costs
-problem achieving goal congruence
3
Q
Cost center
A
