Which of the Following Is an Argument Favoring Decentralization

question 55

Multiple Choice

Which of the following is an argument favoring decentralization?

• A) It can facilitate coordination.
• B) It can help ensure that decisions are consistent with organizational objectives.
• C) It can give top-level managers the means to bring about needed major organizational changes.
• D) It permits greater flexibility.

Calculate the lowest acceptable transfer price from the viewpoint of the selling division.

Determine the impact of intra-company sales on the overall profitability of the company.

Assess the financial benefits of internal transfers for both the selling and buying divisions.

Identify variables that influence transfer pricing decisions, such as variable costs, idle capacity, and external supply costs.

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Definitions:

Service Recovery Process

Involves actions a company takes to rectify a failed service, aiming to restore customer satisfaction and loyalty following service failures or complaints.

Three Fs

The term "Three Fs" refers to Friends, Family, and Fools, often mentioned as the initial source of funding for start-ups and small businesses.

Orphan

A child who has lost both parents through death or, in some definitions, a child who has lost one parent.

Account Penetration

The process of deepening relationships with existing customers by selling more products or services.