Identify Which of the Following Statements Is Not a Problem

question 69

Multiple Choice

Identify which of the following statements is not a problem with decentralization.

• A)Managers may make decisions that are not in the organization's best interests.
• B)Managers tend to duplicate services that might be less expensive if centralized.
• C)Costs of accumulating and processing information are frequently reduced.
• D)Managers may waste time bargaining with other segment managers about transfer prices.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, reflectively the interest payments due on any type of debt.

Face Value

The nominal value printed on a bill, bond, ticket, or other document, representing its value at issuance and/or redemption.

Effective-Interest Method

A method used in finance to systematically allocate the interest expense or income over the life of a financial asset or liability.

Interest Period

The span of time over which interest is calculated and charged on loans or investments.