Question

Which of the following is a disadvantage of decentralization? a.Decentralization of operations is not desirable for...

Which of the following is a disadvantage of decentralization? a.Decentralization of operations is not desirable for large companies. b.Decentralization of operations prevents managers from becoming experts in their areas of operations. c.Decentralization of operations discourages training for managers. d.Decentralization of operations results in duplication of assets and expenses across divisions.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Disadvantages of Decentralization =

- d. Decentralization of operations results in duplication of assets and expenses across divisions.

Explanation-

Decentralization will lead to duplication of assets and expenses for different branches, departments and divisions of companies. It will increase the cost and expenses at different branches etc. This it is a disadvantage.

Decentralization is usually done in large companies, decentralization does not prevent managers from expert in their area and it does not discourage training for managers.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following is correct about ROI and Residual Income? One disadvantage of Residual Income...
Which of the following is correct about ROI and Residual Income? One disadvantage of Residual Income is that it causes under- investment problems One disadvantage of RO is that it biases in favor of larger business units because it shows dollar results In practice, companies tend to use both measures in cyaluating performance None of the above
Which of the following is a disadvantage of joint ventures? A: Joint ventures with local partners...
Which of the following is a disadvantage of joint ventures? A: Joint ventures with local partners face a high risk of being subject to various forms of adverse government interference. B: It can lead to conflicts and battles for control between the investing firms. C: Companies have only a short-term commitment to the foreign market. D: It is generally the most costly method of serving a foreign market from a capital investment standpoint.
50. Which of the following is a disadvantage of enterprise resource planning (ERP) systems? A.It is...
50. Which of the following is a disadvantage of enterprise resource planning (ERP) systems? A.It is not supported by cloud computing. B.It is not beneficial to large corporations. C.Its implementation requires a large commitment of time and people. D.It uses separate software systems, such as sales and payroll. 53. Which of the following is a benefit provided by internal control? A.It ensures timely collection of accounts receivables. B.It guarantees that a business makes profit. C.It promotes operational efficiency. D.It ensures...
Westerville Company reported the following results from last year’s operations:        Sales   $   1,500,000 Variable...
Westerville Company reported the following results from last year’s operations:        Sales   $   1,500,000 Variable expenses      690,000 Contribution margin      810,000 Fixed expenses      435,000 Net operating income   $   375,000 Average operating assets   $   1,250,000 At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics:        Sales   $   420,000      Contribution margin ratio      70   % of sales Fixed expenses   $   252,000      The company’s minimum required...
Westerville Company reported the following results from last year’s operations:
Westerville Company reported the following results from last year’s operations:Sales$1,400,000Variable expenses510,000Contribution margin890,000Fixed expenses610,000Net operating income$280,000Average operating assets$875,000At the beginning of this year, the company has a $175,000 investment opportunity with the following cost and revenue characteristics:Sales$280,000Contribution margin ratio50% of salesFixed expenses$98,000The company’s minimum required rate of return is 15%.7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e.,...
The Scarf division of Wintertime Inc. reported the following results from last year’s operations: Sales    $1,000,000...
The Scarf division of Wintertime Inc. reported the following results from last year’s operations: Sales    $1,000,000 Variable expenses       700,000 Contribution margin    300,000 Fixed expenses            200,000 Net operating income $100,000 Average operating assets $1,000,000 At the beginning of the year the Scarf division had a $200,000 investment opportunity with the following characteristics: Sales $300,000 Contribution margin ratio 40% of sales Fixed expenses $60,000 If the division pursues the investment opportunity and otherwise performs the same as last year, the combined (new)...
Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000 Variable expenses 500,000...
Westerville Company reported the following results from last year’s operations: Sales $ 1,500,000 Variable expenses 500,000 Contribution margin 1,000,000 Fixed expenses 700,000 Net operating income $ 300,000 Average operating assets $ 1,000,000 At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics: Sales $ 300,000 Contribution margin ratio 60 % of sales Fixed expenses $ 132,000 The company’s minimum required rate of return is 10%. 13. If the company pursues...
9) Youns Inc. reported the following results from last year's operations: Sales $ 10,500,000 Variable expenses...
9) Youns Inc. reported the following results from last year's operations: Sales $ 10,500,000 Variable expenses 6,610,000 Contribution margin 3,890,000 Fixed expenses 3,260,000 Net operating income $ 630,000 The company's average operating assets were $5,000,000. At the beginning of this year, the company has a $1,400,000 investment opportunity that involves sales of $2,800,000, fixed expenses of $616,000, and a contribution margin ratio of 30% of sales. If the company pursues the investment opportunity and otherwise performs the same as last...
Westerville Company reported the following results from last year’s operations:        Sales   $   1,500,000 Variable...
Westerville Company reported the following results from last year’s operations:        Sales   $   1,500,000 Variable expenses      690,000 Contribution margin      810,000 Fixed expenses      435,000 Net operating income   $   375,000 Average operating assets   $   1,250,000 At the beginning of this year, the company has a $350,000 investment opportunity with the following cost and revenue characteristics:        Sales   $   420,000      Contribution margin ratio      70   % of sales Fixed expenses   $   252,000      The company’s minimum required...
Which of the following statements is false regarding performance measurement in Janthorn Company? ----In a well-designed...
Which of the following statements is false regarding performance measurement in Janthorn Company? ----In a well-designed balanced scorecard, financial performance measures should be integrated with non-financial measures. ----Because of operating leverage, an increase in unit sales ordinarily has the effect of increasing sales margin. ----Inspecting, moving, and queuing time add no value to the product and should be eliminated as much as possible. ----One major disadvantage of the return on investment approach is that it cannot be used to compare...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT