Although a Firm May Experience Better Cost Controls Through Departmentalization

question 222

True/False

Although a firm may experience better cost controls through departmentalization, it may not increase its responsiveness to customer needs.

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Definitions:

Statistical Significance

A result is said to be statistically significant if the computed p-value is less than some prescribed number, usually 0.05.

Null Hypothesis

In statistical hypothesis testing, a statement suggesting that there is no significant difference or effect and that any observed difference is due to sampling or experimental error.

Small P-value

In statistical hypothesis testing, a small p-value indicates strong evidence against the null hypothesis, suggesting that the observed data is unlikely under the assumption of no effect or no difference.

Null Hypothesis

A statistical assumption that indicates no effect or no difference in a particular context, used as a starting point for hypothesis testing.