Decision-Making Based on General Knowledge Is More Likely to Occur

question 20

Multiple Choice

Decision-making based on general knowledge is more likely to occur in this type of organisation

• A) Centralised
• B) Decentralised
• C) Effective
• D) Ineffective

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Definitions:

Profit Margin

A financial metric indicating the percentage of income left over from revenues after accounting for costs and expenses.

Activity Base

A measure used to allocate costs to activities, such as units produced, hours worked, or miles driven.

Service Departments

Units within an organization that support other departments but do not directly contribute to profit, such as human resources and maintenance.

Investment Turnover

A measure of a company's ability to use its assets to generate sales or revenue, indicating how efficiently the investments are being used.