Which of the Following Is an Advantage of Decentralisation

question 47

Multiple Choice

Which of the following is an advantage of decentralisation?

• A)Focuses managers' attention on the organisation as a whole
• B)Does not result in a duplication of activities
• C)Reduces the cost of gathering information
• D)Creates greater responsiveness to local needs

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Definitions:

Direct Labor Used

The total hours worked by employees directly involved in the production process, impacting manufacturing costs.

Prime Costs

The combined costs of direct materials and direct labor involved in manufacturing a product.

Direct Materials

Raw materials that are directly traceable and allocable to a finished product in the manufacturing process.

Factory Overhead

All indirect costs associated with manufacturing, including costs related to operating the factory such as utilities, maintenance, and salaries of indirect labor.