A Benefit of Decentralisation Should Be Increased Motivation of Subunit

question 96

True/False

A benefit of decentralisation should be increased motivation of subunit managers.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product.

Average Total Cost (ATC)

The total cost of production divided by the quantity produced, representing the cost on average of producing one unit of output.

Total Variable Costs (TVC)

Total Variable Costs represent the overall expenses that vary directly with the level of production output, such as raw materials and labor hours.

Output

The total amount of goods or services produced by a person, machine, or industry.