Which of the Following Is a Disadvantage of Decentralization That

question 181

Multiple Choice

Which of the following is a disadvantage of decentralization that occurs when the organization struggles to achieve goal congruence?

• A)Unit managers may not understand the big picture of the company.
• B)Management does not have time to concentrate on long-term strategic planning.
• C)Unit managers have decreased motivation and retention.
• D)Managers receive training and experience to allow advancement in the organization.

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Definitions:

Managerial Accountant

A professional who focuses on providing financial information within a company to assist in decision making and financial planning.

Operations

Refers to the daily activities involved in running a business, which can include production, marketing, and product development.

Variable Costs

Costs that change in proportion to the volume of goods or services produced.

Per-unit Basis

A method of calculation or evaluation by considering individual units or items, allowing for analysis or comparison.