All of the following are true of responsibility centers EXCEPT that they:
A)operate like a small business.
B)promote the interests of the larger organization.
C)coordinate activities with other responsibility centers.
D)are best used in a centralized organization.

Question

Quizplus · Accepted Answer

Responsibility centers are not specific to any organizational structure and can be used in centralized, decentralized, or hybrid organizations. Therefore, statement D is incorrect. The other statements are true. Responsibility centers operate like small businesses in that they are accountable for their own performance, promote the interests of the larger organization, and coordinate their activities with other responsibility centers.

All of the Following Are True of Responsibility Centers EXCEPT