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Question 1 (2 points) What is a profit center? ()A business segment whose manager has control over costs and also has control over revenues and
Question 1 (2 points) What is a profit center? ()A business segment whose manager has control over costs and also has control over revenues and the use of investment funds O)A business segment whose manager has control over costs and revenues but has no control over the use of investment funds O)A business segment whose manager has no control over costs, revenues or the use of investment funds O)A business segment whose manager has control over costs or revenues or the use of investment funds Question 2 (2 points) To evaluate how a segment is performing, you would look at the: O Profit (contribution) controllable by the segment manager Profit (or contribution) of the segment (also called the segment margin) O Contribution margin of the segment O Profit (or contribution) of the company as a whole Question 3 (1 point) Transfer prices only influence the buying profit center manager's decision about how much product/service to buy internally, but it does not influence the selling profit center manager's decision about selling internally. True False Question 4 (1 point) An advantage of decentralization is that decision-making authority is spread throughout the organization rather than being confined to a few top executives. This allows the organization to make the most balanced and informed decisions. O True False
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