Which of the Following Is an Advantage of Decentralization

question 98

Multiple Choice

Which of the following is an advantage of decentralization?

• A) Managers' motivation and retention can be increased by empowering segment managers to make decisions.
• B) Certain costs of activities may be duplicated.
• C) Customer response time is generally decreased.
• D) Top management can concentrate on decisions that relate to day-to-day operations of segments.

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Definitions:

Standard Cost System

A cost accounting system that uses cost estimates for materials, labor, and overhead to assess performance by comparing these standard costs to actual costs incurred.

Work in Process

Inventory comprising goods that are in the production process but not yet completed.

Raw Material

Basic materials used in the production process to manufacture goods, often processed in multiple stages to produce the final product.

Predetermined Overhead Rate

A rate established in advance used to apply manufacturing overhead costs to products based on a certain activity base.