Question 1
On an organizational chart, from bottom to top, which of the following is the order of responsibility centers?
◦ Profit, investment, cost
◦ Cost, profit, investment
◦ Profit, cost, investment
◦ Cost, investment, profit
Question 2
In a centralized organization, decision-making authority
◦ is spread throughout the organization.
◦ rests with a small group of managers in a single location.
◦ always rests with profit center managers.
◦ is broader at the bottom of the organizational chart.