Which of the Following Factors Would Require a More Decentralized

question 39

Multiple Choice

Which of the following factors would require a more decentralized organizational structure?

• A) when the lower-level managers want a voice in decisions
• B) when the lower-level managers are not capable of making decisions
• C) when the decisions to be made are not significant
• D) when the company is large

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Definitions:

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of technology, ensuring continuous updating of inventory and cost of goods sold data.

Freight Costs

Expenses incurred by a company to ship its products to customers, usually varying based on distance and weight.

Inventory Account

An accounting record that tracks the cost of goods available for sale or used in production.

Perpetual Inventory System

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.