Which of the Following Is NOT an Advantage of Decentralization

question 144

Multiple Choice

Which of the following is NOT an advantage of decentralization?

• A) provides training
• B) frees top management time
• C) works to achieve goal congruence
• D) supports the use of expert knowledge

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Definitions:

Variable Costing

An accounting method that includes all variable production costs (materials, labor, overhead) in product costs but treats fixed overhead expenses as period costs.

Reconciliation

The process of ensuring two sets of records (usually the balances of two accounts) are in agreement.

Variable Costing

A costing method where only variable production costs are included in product costs, with fixed overhead expenses treated as period costs.

Contribution Format

A method of income statement presentation that separates fixed costs from variable costs to highlight the contribution margin.