true or false - chapter 9

Question 1

For a centralized company, the major planning and controlling decisions are made by top management.

Answer 1

True

Question 2

In a decentralized company, all the planning and controlling decisions are made by top management.

Answer 2

false

Question 3

Performance evaluation systems provide top management with a framework for maintaining control over the entire organization

Answer 3

True

Question 4

Once a company decentralizes operations, top management is still involved in running subunits day-to-day operations.

Answer 4

False

Question 5

In decentralized companies, performance evaluation systems provide upper management with the feedback it needs to maintain control over the entire organization.

Answer 5

True

Question 6

Because profit centers are only responsible for controlling costs, their performance reports include only information on actual costs versus budgeted costs.

Answer 6

False

Question 7

A unique factor of responsibility accounting performance reports is the focus on responsibility and controllability.

Answer 7

True

Question 8

Responsibility reports are performance reports that capture the financial performance of cost, revenue, and profit centers with focus on responsibility and control.

Answer 8

True