Decentralized organizations can delegate authority and still maintain control and monitor managers' performance by designing appropriate management control systems.Which of the following responsibility centers would be evaluated similar to an independent business?
A)profit center
B)revenue center
C)investment center
D)discretionary cost center

Question

Quizplus · Accepted Answer

An investment center is evaluated similar to an independent business because it is responsible for generating revenues, controlling costs, and making investment decisions, thus having control over its own profits and investments.

Decentralized Organizations Can Delegate Authority and Still Maintain Control and Monitor