When management grants greater latitude to a department in initiating transactions, _______.
A)strong budget and accountability controls over a department's expenditures are usually established
B)weak budget and accountability controls over a department's expenditures are usually established
C)strong budget and accountability controls over a department's receipts are usually established
D)weak budget and accountability controls over a department's receipts are usually established

Question

Quizplus · Accepted Answer

When management grants a department more freedom in initiating transactions, it typically establishes strong budget and accountability controls over that department's expenditures to ensure that the increased autonomy does not lead to financial mismanagement or inefficiency.

When Management Grants Greater Latitude to a Department in Initiating