As Compared to the Decentralized Management Structure, Which of the Following

question 303

Multiple Choice

As compared to the decentralized management structure, which of the following is a disadvantage of the centralized management structure?

• A)Potential for inter-organizational conflict
• B)Less top management control
• C)Less efficient
• D)Complex distribution system

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Definitions:

Cost of Goods Manufactured

The total cost of producing goods during a certain period, including raw materials, direct labor, and manufacturing overhead.

Operations

The day-to-day activities involved in running a business, including production, sales, and administration.

Overapplied Overhead

A situation in which the overhead assigned to products or services exceeds the actual overhead costs, resulting in a discrepancy in cost accounting.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and overhead expenses.