If Decentralized Decision Making Is in Place,decisions Are

question 7

Multiple Choice

If decentralized decision making is in place,decisions are:

• A) made at the top management level.
• B) made at the middle management level.
• C) delegated to operating personnel.
• D) contracted to external consultants.

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Definitions:

Absorption Costing

A method in accounting where all costs of manufacturing are absorbed by the units produced.

Variable Costing

A costing method that includes only variable production costs (direct labor, materials, and overhead) in product costs, excluding fixed costs.

Fixed Overhead

Denotes the regular, recurring costs associated with running a business that do not fluctuate with production volume, such as rent, salaries, and utilities.

Net Income

Net income is the total earnings of a company after all expenses and taxes have been deducted from total revenue, indicating the company's profit.