In Organizations with Many Layers of Managers, It Takes Less

question 85

True/False

In organizations with many layers of managers, it takes less time for information to travel up the hierarchy and for decisions to travel back down.

---

Definitions:

Salvage Value

An asset’s projected terminal value after the end of its usefulness.

Straight-line Method

A method of depreciation that allocates an equal amount of the asset's cost to each year of its useful life.

Units-of-activity Method

A depreciation method that allocates an asset's cost based on its usage, activities, or units produced, rather than the passage of time.

Double-declining-balance Method

An accelerated depreciation method that doubles the depreciation expense compared to the straight-line method.