1. Goal congruence exists when the goals of:
   1. a profit centre are consistent with those of an investment centre;
   2. unit managers are consistent with organizational goals;
   3. employees who are empowered to maximize sub-optimization are promoted to cost centre manager;
   4. the organization are included in a vision statement; or
   5. none of the above.

1. A quantitative non-financial performance measure for a manufacturing firm would be:
   1. a cost variance;
   2. net cash flow;
   3. number of customer complaints; or
   4. net income per employee.

1. ____ involves pushing the authority to make decisions down to lower levels in the organization.
   1. decentralization
   2. responsibility accounting
   3. sub-optimization
   4. synchronous management

Which of the following is an advantage of decentralization?

1. Personnel may not have good decision-making skills.
2. It can be expensive.
3. It helps top management recognize and develop managerial talent.
4. It may require more effective methods of communication among employees.