1. Which of the following changes might help solve a divisional conflict regarding a decision?
a. Change who has authority to make the decision
b. Transfer information to the decision makers so they are better informed
c. Change the performance evaluation and associated compensation of the decision makers
d. All of the above
2. Joe runs the Service Division for a car dealership. The overall delership has profit of $10 million on sales of $100 million and costs of 90 million. Joe's division contributed $9 million in sales and $7 million in costs. If the Service Divsion is evaluated as a profit center, what dollar amount is most relevant to Joe?
a. $2 million
b. $7 million
c. $9 million
d. $10 million
3. If you were a manager of a cost center, which of the following areas would be of most interest to you?
a. Capturing potential economies of scale
b. Increasing the quality of your product
c. Hiring more marketing staff to figure out how to increase prices
d. Adding additional features to your product
4. Which of the following provides an example of divisions based on a functional organizational structure?
a. Americas, Africa, Asia, Europe
b. Research and development, production, finance, marketing
c. Youth products, teen products, senior products
d. usiness users, home users, educational users
5. Which of the following actions is consistent with a manager whose compensation depends on meeting a budget goal and who does not believe he can make that goal?
a. Asking a vendor to pre-ship and invoice materials for the following year.
b. Discovering a "problem" in the order taking process, thereby forcibly pushing sales into the ensuing year.
c. Increasing accounting reserve estimates, leading to higher recognized expenses.
d. All of the above