Chapter 12 Fundamentals of Management Control Systems Answer
Key
True / False Questions
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12–11
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Multiple Choice Questions
23.
The design and use of management control systems uses concepts from which of the
following disciplines?
24.
What is the purpose of the management control system?
25.
Which of the following correctly defines a principal-agent relationship?
26.
What is the primary managerial responsibility in an organization?
27.
Which of the following would be considered a principal in the principal-agent
relationship?
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Decentralization refers to the delegation of decision-making authority to:
30.
Which of the following is not a characteristic of a decentralized organization?
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32.
Which of the following is not a cost of decentralization?
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____________ is the delegation of decision-making authority to lower management levels
within the organization.
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