Q5RQ - Horngren'S Financial And Managerial Accounting

Question

Usually, which outweighs the other in decentralization—advantages or disadvantages?

Step-by-Step Solution

Answer

Answer

The advantages outweigh the other in decentralization.

Step 1: Meaning of Decentralization

In business terms, decentralization refers to the process of delegating the activities among the various departments and personnel of the organization by the authorized sources, groups, or locations.

Step 2: Factor that outweighs decentralization

The advantages of decentralization outweigh the disadvantages because of the

following reasons:

• Decentralization helps in improving motivation and retention.
• This approach lessens the work pressure because it delegates the task to many.
• Decentralization facilitates the managers to accomplish their tasks with utmost accuracy.