Thanks to His Firm's Decentralization and Use of Responsibility Accounting,Matt

question 30

Multiple Choice

Thanks to his firm's decentralization and use of responsibility accounting,Matt has more time to review a proposed new joint venture with one of the firm's business partners.What advantage of decentralization does this illustrate?

• A) Encourages upper-level management to concentrate on strategic decisions
• B) Trains lower-level managers to accept higher responsibilities
• C) Improves performance evaluation
• D) Motivates managers to improve productivity

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Definitions:

Cost Pools

Groupings of individual costs based on their shared function or similarity, used in the allocation of costs to products or services.

ABC Systems

Activity-Based Costing systems, which allocate overhead costs based on the activities that drive those costs, providing more accurate cost information.

Cost Drivers

Factors that cause the cost of an activity or process to change, used in strategic management to control and reduce costs.

Volume

The quantity of something, often used to refer to the total amount of stocks or contracts traded in a financial market.