Match each of the following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-The practice of delegating decision-making authority to lower levels
A)Centralization
B)Revenue centre
C)Profit centre
D)Cost centre
E)Investment centre
F)Decentralization

Question

Quizplus · Accepted Answer

Decentralization refers to the practice of delegating decision-making authority to lower levels.

Answer: A  
 Centralization refers to the concentration of decision-making authority at higher levels in an organization.

Answer: D  
 A cost centre is a unit of an organization that is responsible for costs but not for revenues or profits.

Answer: C  
 A profit centre is a unit of an organization that is responsible for both revenues and costs and also for generating profits.

Answer: E  
 An investment centre is a unit of an organization that is responsible for both revenues and costs, as well as for making decisions about investments in long-term assets.

Answer: These options are exhaustive and there are no classifications left to match.

Match Each of the Following Terms with Their Correct Description