Prentiss Company Is Decentralized with Three Divisions

Multiple Choice

Prentiss Company is decentralized with three divisions.While all three division managers have responsibility for costs,only the Division Three manager has responsibility for generating revenues.Select the correct statement from the following.

A) Prentiss Company is not large enough to benefit from preparing responsibility reports.
B) Responsibility reports should be prepared for Division Three only.
C) Responsibility reports should be prepared for all three divisions.
D) Responsibility reports should be prepared for Divisions One and Two only.