Costing - Study Mode
[#1016] Larger number of manager subordinates and higher level manager are termed as
Correct Answer
(B) broader responsibility center
Explanation
Solution: Larger number of manager subordinates and higher level manager are termed as broader responsibility center. A responsibility center is a functional entity within a business that has its own goals and objectives, dedicated staff, policies and procedures, and financial reports.
[#1017] An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as
Correct Answer
(A) coordinating company effort
Explanation
Solution: An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as coordinating company effort. Co-ordination is the unification, integration, synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. It is a hidden force which binds all the other functions of management.
[#1018] Manager who is responsible for investments of company, its costs and revenues is known as
Correct Answer
(B) investment center
Explanation
Solution: Manager who is responsible for investments of company, its costs and revenues is known as investment center. An investment center is a business unit that can utilize capital to contribute directly to a company's profitability.
[#1019] Use of variables to signal whether strategies are effective or ineffective is classified as
Correct Answer
(A) evaluating strategy
Explanation
Solution: Use of variables to signal whether strategies are effective or ineffective is classified as evaluating strategy. Strategy evaluation means collecting information about how well the strategic plan is progressing.
[#1020] Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as
Correct Answer
(C) responsibility center
Explanation
Solution: Segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as responsibility center. A responsibility center is a functional entity within a business that has its own goals and objectives, dedicated staff, policies and procedures, and financial reports.