Simon LLC produces smartphones, computers, and televisions. Although all high - level decisions are made at company
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Question:
Simon LLC produces smartphones, computers, and televisions. Although all highlevel decisions are made at company headquarters by top management, rapid expansion and increasingly specialized products have caused the company to consider decentralizing into three divisions. Each division manager would be responsible for costs, revenues, and investments in assets.
Required:
a How should the company classify each divisionas a cost center, profit center, or investment center?
Explain.
b What are the potential advantages of decentralizing? c What are the potential disadvantages of decentralizing?
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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