Decentralization Is Usually Desirable in a Company Under Which of the Following

question 99

Multiple Choice

Decentralization is usually desirable in a company under which of the following conditions?

• A) Employees are willing to take responsibility.
• B) The firm is geographically centralized.
• C) The firm is very small.
• D) The firm is operating in a stable environment.

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Definitions:

LIFO Reserve

The difference between the cost of inventory calculated using the Last In, First Out method and the First In, First Out method.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle.

LIFO

Last In, First Out, an inventory valuation method that assumes the most recently acquired items are sold first, affecting accounting and tax calculations.

FIFO

"First In, First Out," an inventory valuation method where goods first acquired are the first to be sold.