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:

Marginal Cost

The rise in overall expenses resulting from the manufacture of an extra unit of a good or service.

Average Variable Cost

The total variable cost divided by the quantity of output, representing the variable cost per unit of output produced.

Marginal Cost

The expenditure involved in creating an additional product unit.

Total Variable Cost

The sum of all costs that vary with the level of output, including costs like raw materials and direct labor.