Some of the Disadvantages of Decentralization Are Narrow Specialization and Job

question 15

True/False

Some of the disadvantages of decentralization are narrow specialization and job boredom, lack of job flexibility, and a tendency to minimize legitimate differences in requirements.

---

Definitions:

Fixed Costs

Expenses that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance.

Contribution Margin Ratio

A financial metric that measures the proportion of revenue that exceeds variable costs, indicating how much of sales revenue is available to cover fixed costs and generate profit.

Fixed Costs

Costs that remain constant regardless of the amount of output or the level of business operations, including expenses like rent, wages, and insurance fees.

Rent Expense

The cost incurred from renting property or equipment for business or personal use, recognized as an expense on the income statement.