What Are Two Disadvantages of Decentralization

question 102

Essay

What are two disadvantages of decentralization?

Recognize signals indicating the need for a new product costing system.

Assess the relationship between activity-based system accuracy and its impact on decision-making and operational costs.

Identify the limitations of traditional costing systems and the conditions under which they produce distorted product costs.

Understand the allocation of costs in simple activity-based product costing systems versus traditional systems.

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Definitions:

Meiosis

A type of cell division that reduces the chromosome number by half, resulting in four haploid cells, each genetically distinct from the parent cell, involved in sexual reproduction.

Sperm Cell

The male reproductive cell, which can fertilize an egg cell to initiate the development of a new organism.

Genetic Material

Molecules within living cells that carry genetic information, primarily DNA or RNA, which guide the development, functioning, and reproduction of organisms.

Monozygotic (MZ) Twins

Twins that derive from a single zygote that has split into two; identical twins. Each MZ twin carries the same genetic code.