1. Which of the the following are statement(s) is/are true with regards to decentralization: I. Decision making is faster in a decentralize organization. II. Better updated information to assist decision making. III. Free top management to concentrate on strategic issues.

I only

I & II

II & III

I, II, & III

2. The Manufacturing Division of a decentralized organization is most likely considered to be a(n) ______________ center.

profit

contribution

investment

cost

3. Decentralization occurs when _______________

the firms operations are located over a large geographic area to reduce risk

authority for important decisions is delegated to lower levels of the organization

important decisions are made at the upper levels and the lower levels of the organization are responsible for implementing the decisions

None of the above

5. Which statement(s) below regarding break-even point is/are true?

total revenue equals total fixed costs

total profit is equal to total variable costs

total contribution margin equals to total fixed cost

all of the above are true

6. Total Contribution Margin is calculated as ______________

sales revenue minus cost of goods sold

sales revenue minus total variable costs

sales revenue minus total fixed costs

none of the above