In a Decentralized Organization

question 18

Multiple Choice

In a decentralized organization,

• A)all functions are delegated to subunit managers who are closest to the information.
• B)subunits under the control of a single manager are normally grouped by organizational structure.
• C)it would be difficult to group geographically related subunits pursuing different missions under the same manager.
• D)functions such as financing and product/service pricing are typically retained by top management.

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Definitions:

Processing Time

The duration required to complete a particular process or activity, often used in manufacturing and operational analysis.

Unit-level Activities

Activities in cost accounting that vary with the number of units produced, such as operating machinery for each unit.

Departmental Unit

A division within an organization with specific responsibilities, often based on function, product line, or geographical area.

Overhead Costs

Expenses related to the operation of a business that are not directly associated with the production of goods or services, such as rent and utilities.