Which of the Following Is True of Decentralized Organizations

question 74

Multiple Choice

Which of the following is true of decentralized organizations?

• A) Management grants much authority to supervisors.
• B) Top managers retain all the authority.
• C) All decisions are made by the top management.
• D) Line authority does not exist.

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Definitions:

Incremental Cost Approach

Refers to the analysis of the additional costs that are incurred when making business decisions, focusing on the costs that change with the level of activity.

Discount Rate

The interest rate used to discount future cash flows to their present value, often reflecting the investor's required rate of return.

Major Repairs

Significant restorations or overhauls to equipment, buildings, or machinery that extend their useful life but are not considered routine maintenance.

Simple Rate Of Return

A metric used to evaluate the gain or loss on an investment relative to the amount invested, expressed as a percentage.