The Decentralization of Control in Organizations

question 74

Multiple Choice

The decentralization of control in organizations:

• A) is the key way for any organization to increase productivity.
• B) has brought about higher costs due to the implementation of technology to do the work of downsized employees.
• C) works best in manufacturing and production-oriented businesses.
• D) is done to increase managerial efficiency and employee satisfaction.

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Definitions:

Production Costs

The total cost incurred by a company to manufacture a product or offer a service, including raw materials, labor, and overhead expenses.

Management

The method of strategizing, structuring, guiding, and managing resources to accomplish particular objectives.

Flexible Budgets

A financial plan that varies in response to changes in the amount of operations or activity.

Constant Costs

Expenses that do not change in proportion to the level of activity or production volume.