Which of the Following Is Often Not a Disadvantage of Decentralization

question 83

Multiple Choice

Which of the following is often not a disadvantage of decentralization?

• A) Decreased job satisfaction for lower-level managers.
• B) Lack of coordination and communication between segments.
• C) Lack of company focus as lower-level managers may make decisions that benefit their own particular segment.
• D) Higher training costs for lower-level managers.

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Definitions:

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including materials, labor, and overhead.

Overhead Applied

An accounting method that allocates overhead costs to specific cost objects, such as products or jobs, based on a pre-determined rate or base.

Job Order Costing System

An accounting system used to assign costs to specific jobs or orders, tracking the direct materials, direct labor, and manufacturing overhead per job.

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs. These costs include utilities, depreciation of factory equipment, and salaries of maintenance personnel.