Which One of the Following Statements About Decentralization Is NOT

question 79

Multiple Choice

Which one of the following statements about decentralization is NOT accurate?

• A) Decentralization assists in the on-the-job training of subordinates for higher-level positions.
• B) Decentralization provides a quicker response to a diverse set of unrelated problems than does centralization.
• C) Decentralization is a popular approach in many industries.
• D) Generally speaking, greater decentralization provides lower subordinate satisfaction.
• E) Decentralization is the degree to which the authority to make decisions is given to lower levels in an organization's hierarchy.

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Definitions:

Activity Rates

Rates used in activity-based costing to allocate costs to products or services based on the activities they require.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to related products and services based on their usage of resources.

Direct Labor-Hours

The total hours worked directly on the manufacturing of goods.

Direct Labor Rate

The average cost paid per hour of direct labor, typically used in calculating the direct labor costs of producing goods or services.