Which of the Following Is a Disadvantage of Decentralization

question 115

Multiple Choice

Which of the following is a disadvantage of decentralization?

• A) Decisions made by one manager may negatively affect the profitability of the entire company.
• B) Helps retain quality managers.
• C) Decision making by managers closest to the operations.
• D) Managers are able to acquire expertise in their areas of responsibility.

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Definitions:

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements, which may not align with the calendar year.

Accrued Revenues

Earnings that have been recognized for accounting purposes but have not yet been received in cash or other assets, typically resulting from services rendered or goods delivered.

Interim Period

A financial reporting period that is shorter than a full fiscal year, often quarterly.

Accounting Period

A specific duration of time for which financial statements are prepared, often annually or quarterly.