Decentralization Is More Likely to Occur When

question 113

Multiple Choice

Decentralization is more likely to occur when:

• A)an organization becomes so complex that senior executives cannot process all the decisions that significantly influence the business.
• B)corporate leaders want more consistent decisions across all work units.
• C)corporate leaders want to increase consistency and reduce costs across the organization.
• D)all of these occur.
• E)none of these occur.

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Definitions:

Budgeted Costs

Projected financial figures related to the expenses expected to be incurred over a budget period.

User Departments

Departments within an organization that utilize services or resources provided by other parts of the organization.

Support Department

A unit within an organization that provides essential services or support to the primary operations or production departments, not directly generating revenue.

Cost Allocations

The method of distributing indirect costs to various cost objects such as products, services, or departments.