Decentralization May Help an Organization Respond Effectively to Local Conditions,but

question 76

True/False

Decentralization may help an organization respond effectively to local conditions,but may eventually harm the organization's performance.

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Definitions:

Direct Labor-Hours

A measure of the time workers spend on a specific task or production, often used for costing purposes.

Traditional Costing Method

An accounting approach that assigns manufacturing overhead costs to products based on a volume metric like direct labor hours or machine hours.

Activity-Based Costing

A costing methodology that assigns costs to products based on the amount of resources used for specific activities, such as manufacturing or selling.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process of a product.