Cyber Monday 2023! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: CM25OFF
Welcome to Pass4Success

- Free Preparation Discussions

IMANET Exam CMA Topic 5 Question 48 Discussion

Actual exam question for IMANET's Certified Management Accountant exam
Question #: 48
Topic #: 5
[All Certified Management Accountant Questions]

Which one of the following will not occur in an organization that gives managers throughout the organization maximum freedom to make decisions?

Show Suggested Answer Hide Answer
Suggested Answer: C

Decentralization is beneficial because it creates greater responsiveness to the needs of local customers, suppliers, and employees Managers at lower levels are more knowledgeable about local markets and the needs of customers, etc. A decentralized organization is also more likely to respond flexibly and quickly to changing conditions, for example, by expediting the introduction of new products. Furthermore, greater authority enhances managerial morale and development. Disadvantages of decentralization include duplication of effort and lack of goal congruence.


Currently there are no comments in this discussion, be the first to comment!

Save Cancel