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.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that is used globally.

U.S. GAAP

United States Generally Accepted Accounting Principles, which are a set of rules and standards for financial reporting and accounting practices in the U.S.

Straight-Line Method

A method of calculating depreciation of an asset by evenly spreading the cost over its useful life.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that are globally accepted.