Which of the Following Is True of Decentralization

question 115

Multiple Choice

Which of the following is true of decentralization?

• A) Under decentralization, lower-level managers are responsible only for implementing decisions.
• B) Decentralization allows higher management to make better decisions by using local information.
• C) It protects segments of a company from competitive pressures.
• D) It is usually achieved by creating units called divisions.
• E) Decentralization allows only the CEO of a company to make all important decisions.

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Definitions:

Direct Costs

Expenses that can be directly attributed to a specific product, job, or project.

Conversion Costs

Expenses related to transforming raw materials into finished products, encompassing both labor efforts and overhead charges.

Manufacturing Overhead Cost

All indirect costs associated with the production process, such as utilities, maintenance, and factory equipment depreciation.

Units Produced

The quantity of items or goods made or produced by a company within a particular period.