Which of the Following Is NOT a Reason for Decentralization

question 124

Multiple Choice

Which of the following is NOT a reason for decentralization?

• A)ease of gathering and using local information
• B)focusing of central management
• C)allows all decisions to be made at the top
• D)exposing segments to market forces

Understand the practical implications and procedural differences of conducting a physical inventory count under a periodic system.

Understand the principles of inventory management and the impact on financial statements.

Identify the various methods of inventory valuation and their effects on net income and taxes.

Calculate inventory costs using different methods (FIFO, LIFO, Average Cost).

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Current Ratio

A financial metric that evaluates a firm's capacity to meet its short-term liabilities using its existing assets.

Industry Average

The mean performance metric, such as revenue growth or return on equity, of the companies in a particular industry or sector.

Receivables

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.