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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?
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Which of the following correctly defines a principal-agent relationship?
26.
What is the primary managerial responsibility in an organization?
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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:
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Which of the following is not a characteristic of a decentralized organization?
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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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