The Costs of Decentralization Include All of the Following, Except

question 70

Multiple Choice

The costs of decentralization include all of the following, except

• A) management development and learning.
• B) duplication of activities.
• C) increased costs of information-gathering.
• D) too many cost centres.
• E) decreased loyalty to the organization as a whole.

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Definitions:

Machine-Hours

An indicator of the amount of work produced or activity level, determined by how many hours equipment is running.

Plantwide Predetermined Overhead Rate

A single overhead rate calculated by dividing total estimated manufacturing overhead costs by an estimated allocation base for the entire factory, often used in simpler costing systems.

Job-Order Costing System

An accounting system that assigns costs to specific jobs or batches of goods, typically used in manufacturing or service industries where each job is unique.

Direct Labor-Hours

A measurement of the time workers spend directly manufacturing a product, often used to allocate manufacturing overhead.