List Six Factors That Influence the Amount of Centralization (Or

question 47

Essay

List six factors that influence the amount of centralization (or decentralization)in an organization.

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Definitions:

High-low Method

An approach in managerial accounting that approximates variable and fixed costs by examining the maximum and minimum levels of activity.

Inspection Costs

Expenses associated with the activity of checking and verifying the quality or specifications of goods or services.

Direct Labor-hour

A measure of the amount of time spent by workers directly involved in the production process to manufacture a product.

High-low Method

An approach in cost accounting to determine variable and fixed charges, based on analyzing the activity's minimum and maximum levels.