Which of the Following Is a Disadvantage of Decentralization

question 2

Multiple Choice

Which of the following is a disadvantage of decentralization?

• A) Decisions made by one manager may negatively affect the profitability of the entire company.
• B) Decentralization helps retain quality managers.
• C) Managers closest to the operations make decisions.
• D) Managers are able to acquire expertise in their areas of responsibility.

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Definitions:

Business Process

A series of steps that are followed to carry out some task in a business.

Output Capacity

The maximum amount of goods or services a company can produce in a given period under normal working conditions.

Maximum Weekly Output

The highest quantity of goods or services that can be produced or delivered by a company or facility in a week, given resource and operational constraints.

Managerial Accounting

An accounting practice focused on providing financial information to managers for decision-making, planning, and controlling business operations.