Systems Inc

question 90

Multiple Choice

Systems Inc. went through a downsizing process. The company decentralized its distribution of power to its employees while creating teams. Each of the departments was left with a range of 7-15 people who worked collectively to create new ideas. In the end, management found the new approach caused more headaches than benefits. The teams were not productive. What was the likely cause of the lack of productivity?

• A) Systems Inc. should have kept power centralized.
• B) Systems Inc. had too many teams.
• C) Systems Inc. had too many groups.
• D) Systems Inc. had too many people in their teams.

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Definitions:

Bad Debt Expense

The cost associated with accounts receivable that a company is unable to collect.

Uncollectible Accounts

Debts owed to a company that are considered to be uncollectible and are thus written off as a bad debt expense.

Allowance Method

An accounting technique used to estimate uncollectable accounts receivable within a company's financial statements.

Bad Debt Expense

An accounting term representing the amount of revenue considered uncollectible from credit sales.