Which of the Following Would NOT Be a Reason for Decentralization

question 2

Multiple Choice

Which of the following would NOT be a reason for decentralization?

• A)Managers will make decisions for their own benefit, rather than the organization's benefit.
• B)Lower level managers have better access to information.
• C)Upper management can spend more time focusing on strategic planning and decision making.
• D)Lower level managers with decision-making ability are more motivated.

Understand and apply the concept of the relevant range of activity.

Calculate average and incremental costs.

Differentiate between fixed and variable costs.

Determine total and per-unit costs within the relevant range.

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Definitions:

Goodwill

Represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. It reflects intangible assets like brand reputation and customer relationships.

Inventoriable Costs

Costs associated with obtaining or manufacturing products intended for sale, which become part of a company’s inventory.

Computer Software

Refers to programs and other operating information used by a computer to perform specific tasks.

Product Duplication

The process of creating a product that closely resembles or copies the design and functionality of another product in the market.