2. Which of the following does not describe a management control system?

1. establishes a companys strategic goals
2. implements a companys strategic goals
3. monitors a companys strategic goals
4. a system that only measures profitability

4. A key advantage of a decentralized organization is ________.

1. increased administrative costs
2. quicker decisions and response time
3. the ease of aligning segment and company goals
4. duplication of efforts

6. Segments are uniquely identifiable components of the business and can be categorized by all of the following except ________.

1. products produced
2. services provided
3. geographical location
4. number of employees

8. In a centralized organization, where are goals established?

1. at the lower level of the organization and promoted upward
2. outside the organization based on best practices in the industry
3. by each segment of the organization
4. at the highest level of the organization and promoted downward

10. Which of the following is not a type of responsibility center?

1. concentrated cost center
2. investment center
3. profit center
4. cost center

12. A responsibility center in which managers are held accountable for both revenues and expenses is called a ________.

1. discretionary cost center
2. revenue center
3. cost center
4. profit center

14. An important goal of a responsibility accounting framework is to help ensure which of the following?

1. decision-making is made by the top executives.
2. investments made by each segment are minimized.
3. identification of operating segments that should be closed.
4. segment and company financial goals are congruent.