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A Potential Disadvantage of Decentralization Is Which of the Following

question 6

Multiple Choice

A potential disadvantage of decentralization is which of the following?


Definitions:

Total Cost

The complete cost of producing or acquiring goods or services, including fixed and variable costs, but excluding externalities.

Holding Inventory

involves maintaining a stock of goods or materials to meet demand without incurring stockout or excessive surplus costs.

Carrying Costs

Expenses incurred by holding inventory over a period, including storage costs, insurance, and opportunity costs.

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