A division manager may decide to purchase materials from an outside supplier even though another division of the firm could produce the materials at a lower incremental cost using currently idle facilities.This is an example of
A)profit maximization.
B)centralization.
C)goal-congruent behavior.
D)non-goal-congruent behavior.

Question

Quizplus · Accepted Answer

This is an example of non-goal-congruent behavior because the division manager is not making a decision that aligns with the overall goals of the firm, such as minimizing costs and maximizing profits. Instead, they are prioritizing their own division's needs over the needs of the firm as a whole.

A Division Manager May Decide to Purchase Materials from an Outside