Which of the Following Is a Reason Why Top Managers

question 158

Multiple Choice

Which of the following is a reason why top managers would decide to increase the level of decentralized decision-making authority in their company?

• A)Managers at the operational level can respond to issues more quickly than top management.
• B)Top managers want to give attention to grooming the next generation of top managers.
• C)Managing an organization is a time-consuming function.
• D)All of these answer choices are correct.

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Definitions:

Overhead Variance

The difference between the actual overhead costs incurred and the overhead costs applied to products or services.

Actual Overhead

Represents the real costs associated with manufacturing overhead, including expenses such as rent, utilities, and equipment maintenance incurred during production.

Overhead Costs

The indirect costs associated with running a business that cannot be linked to a specific product or service.

Direct Materials

Raw materials that can be directly traced to a finished product and are a part of the manufacturing process.