Which of the Following Is Not a Disadvantage of Decentralized

question 41

Multiple Choice

Which of the following is not a disadvantage of decentralized operation?

• A) Competition among managers decreases profits of the company
• B) Duplication of operations
• C) Price cutting by departments that are competing in the same product market
• D) Top management has less time to devote to long range strategic planning.

Distinguish between different inventory methods and their impact on financial statements.

Identify the normal balances for different types of accounts.

Learn the correct accounting entries for common types of transactions.

Understand the role of adjusting entries in the financial statement preparation process.

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Definitions:

Construction

The process of building or assembling infrastructure, buildings, or other substantial physical structures.

Overhaul

A comprehensive process of inspection and repair to ensure an equipment or system operates efficiently.

Double-declining-balance Method

A method of depreciation that accelerates the depreciation of an asset by applying a fixed rate to its declining book value.

Straight-line Method

A depreciation method that allocates the cost of an asset evenly over its useful life, resulting in a constant annual depreciation expense.