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An organization may be structured as a centralized or decentralized decision-making environment. ...

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An organization may be structured as a centralized or decentralized decision-making environment. ...

An organization may be structured as a centralized or decentralized decision-making environment. Classify each of the following as a characteristic of a centralized or decentralized decision-making environment by placing an "X" in the appropriate column.

	Centralized	Decentralized
Limits conflict between operational decisions and corporate strategy
Reduces communication across units
Is appropriate for small businesses with one product and few employees
Limits potential for errors in decisions made by inexperienced managers
Allows top managers to focus on strategic planning and decision making
Yields more timely information for operational decision making
Decision-making authority for the entire organization rests in the hands of one person or a small group
Develops decision-making skills of next generation of top managers
Limits duplicate work efforts across units
Yields better information for operational decision making

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Managerial Accounting

Edition: 4^th

Author: Davis

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