Among the Major Drawbacks of Highly Centralized Organizational Structure Is

question 67

Multiple Choice

Among the major drawbacks of highly centralized organizational structure is that it

• A)allows top executives to retain authority for most strategic and operating decisions.
• B)is based on strict enforcement of detailed procedures backed by rigorous managerial oversight as the most reliable way to keep the daily execution of strategy on track.
• C)allows for tight control from the top that makes it easy to fix accountability when things do not go well.
• D)relies on the assumption that most company personnel have neither the time nor the inclination to direct and properly control the work they are performing and,further,that they lack the knowledge and judgment to make wise decisions about how best to do their work.
• E)can lengthen response times by those closest to the market conditions because they must seek approval for their actions

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Definitions:

Manufacturing Costs

The total expenses involved in the manufacture of products, including direct materials, direct labor, and manufacturing overhead.

Cost of Goods Manufactured

The total cost incurred to produce goods during a specific period, including materials, labor, and overhead costs.

Cost of Goods Sold

The total expense directly associated with producing or purchasing goods that have been sold.

Period Cost

Costs that are expensed in the period they are incurred and are not directly tied to the production of goods.