Which of the Following Is a Disadvantage of Decentralization

question 204

Multiple Choice

Which of the following is a disadvantage of decentralization?

• A)Unit managers may not understand the big picture of the company.
• B)Management does not have time to concentrate on long-term strategic planning.
• C)Unit managers have decreased motivation and retention.
• D)Managers receive training and experience to allow advancement in the organization.

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Definitions:

Decision-Making Needs

Requirements or information essential for making informed choices or judgments in various situations.

Management

The coordination and administration of tasks to achieve a company's objectives, involving planning, organizing, leading, and controlling resources.

Fixed Cost Per Unit

The cost that does not change with the level of production or sales, divided by the number of units produced, to determine the fixed cost allocated to each unit.

Level Of Activity

A measure of the volume of production or work done in a specific period, often used in costing and productivity analysis.