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:

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating how much contributes to covering fixed costs and generating profit.

Direct Manufacturing Cost

Expenses directly tied to the production of goods, including materials and labor costs.

Indirect Manufacturing Costs

Expenses related to the production process that cannot be directly traced to individual products, such as utilities or salaries for management.

Contribution Margin

The amount by which a product's sales revenue exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.