Roxie, Inc

question 111

Essay

Roxie, Inc. has used a decentralized form of organizational structure for the past five years. The controller, Ms. Hamburg, has noticed that some of the divisions are still using fixed assets that are fully depreciated and that there has been little acquisition activity in these divisions. Coupled with this are very high ROIs, especially when compared to the other divisions that seem to have a regular program of disposition and replacement of fixed assets.
She takes her concerns and observations to the Financial Vice President who says he will review her findings and look into the problem.
Required:
1) What are the potential negative effects of decentralization?
2) Specifically discuss the issues involved in suboptimization.

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Definitions:

Breathing Rate

The number of breaths taken per minute, an important indicator of respiratory function and health.

Paradoxical Sleep

Another term for REM sleep, characterized by rapid eye movement and dreaming, juxtaposed with muscle paralysis in the body.

Muscles

Tissues in the body capable of contraction, enabling movement of parts of the body and the maintenance of posture.

EEG Pattern

The record of the electrical activity of the brain as captured by electroencephalography, showcasing characteristic waveforms that represent different states of brain functioning.