List and Describe Reasons Why a Company Might Choose to Decentralize

question 212

Essay

List and describe reasons why a company might choose to decentralize its operations.

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Definitions:

Raw Materials

The basic materials from which products are made, often processed or combined with other materials in the production process.

Inventories

Assets held for sale in the ordinary course of business, or materials that will be consumed or used in the production of goods to be sold.

Purchased

Refers to the acquisition of goods or services in exchange for money or its equivalent.

Unadjusted Cost

This term refers to the original cost of an asset or operation before any adjustments such as depreciation, inflation, or market changes are applied.