Which of the Following Best Describes an Advantage of Decentralization

question 24

Multiple Choice

Which of the following best describes an advantage of decentralization from the company's perspective?

• A)Decentralization allows decisions to be made more quickly at the division level.
• B)Managers at the division level might make decisions that are in their best interest even if the decision is not in the best interest of the company as a whole.
• C)Decentralization allows top-level management at a corporate headquarters to work with division managers in making day-to-day decisions at the division level.
• D)Decentralization allows for the duplication of administrative services.
• E)None of the answer choices is correct.

Develop skills in financial reporting for internal departments and divisions including cost allocation and responsibility accounting.

Recognize the significance of outside supplier cost considerations in transfer pricing decisions.

Calculate and interpret financial performance metrics such as margin, turnover, and residual income.

Understand the concept of residual income as a performance evaluation metric.

---

Definitions:

Population

The overall population within a designated region or nation.

GDP

The sum total of all goods and services created over a given period in a country, termed Gross Domestic Product, measures its economic achievements.

GDP

Gross Domestic Product is a calculation that reflects the economic success of a nation by summing the value of all produced goods and services within a certain time frame.

Consumption

The use of goods and services by households, contributing to the overall demand in an economy.