zo What does dysfunctional decision making refer to? B Local managers making dec
ID: 2400328 • Letter: Z
Question
zo What does dysfunctional decision making refer to? B Local managers making decisions in their interests, which can diner from those of the organization C Delegated decision authority Poor decisions based on incomplete information E None of the above 21. Which of the following elements is not part of a management control system? A Delegated decision authority B. Performance evaluation system C. Knowledge of local conditions. D Compensation and reward system. 22 An operating unit of an organization is called a cost center if it is responsible: A only for costs B. only for revenues. C. for costs and revenues. D. for investments in assets. 23. An operating unit of an organization is called an investment center if it is responsible A only for costs. B. only for revenues C. for costs and revenues. D. for investments in assets. 24. An operating unit of an organization is called a revenue center if it is responsible: A only for costs. B. only for revenues C. for costs and revenues. D. for investments in assets.Explanation / Answer
20. Dysfunctional decision making refers to local managers making decision in their interests, which can differ from those of the organisation. It is also called Suboptimal decision making. This means a decision benfeits one subunit more than the other subunit.
21. Elements of management control system include:
Itdoes not involve knowledge of local conditions
22. An operating unit is called a cost center if its is responsible only for costs
23. An operating unit is called an investment center if it is responsible for investments for assets
24. An operating unit is called a revenue center if it is a responsible only for revenues.
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