Question: Organizations typically adopt a consistent decentralization or centralization philosophy across all their business functions. Do you agree? Explain. Question content area bottom Part 1
Organizations typically adopt a consistent decentralization or centralization philosophy across all their business functions." Do you agree? Explain.
Question content area bottom
Part
A
No Organizations typically compare the benefits and costs of decentralization on a functionbyfunction basis. For example, companies with highly decentralized operating divisions frequently have centralized income tax strategies.
B
Yes. Management control systems must fit an organization's structure, either centralized or decentralized. For example, in a centralized management system, companies have pushed decisionmaking authority down to subunit managers.
C
Yes. Management control systems must fit an organization's structure. For example, in decentralized management systems power is concentrated at the top and there is relatively little freedom for managers at the lower levels to make decisions.
D
No Organizations typically compare the benefits and costs of decentralization on a locationbylocation basis. For example, companies with multiple locations could have one location centralized and another decentralized.
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