Decentralization divides company operations into various reporting units. Most decentralized subunits can be described as one of four different types of responsibility centers.

Requirements

$1.$

Explain why companies decentralize. Describe some typical methods of decentralization.

$2.$

List the four most common types of responsibility$$ centers, and describe their responsibilities.

Question content area bottom

Part $1$

Requirement $1.$ Explain why companies decentralize. Describe some typical methods of decentralization.

Companies usually decentralize when they

grow too large for one person

to manage the entire$$ organization's daily operations.

Part $2$

Decentralization is often based$$ on: