58) Which of the following is an advantage of consolidation? a) Consolidation of administrative functions increases unit costs b) The smaller size of the network or system enables it to negotiate better terms from vendors c) Capital acquisition costs are reduced, and risk is spread across a larger number of units d) Management expertise is divided

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 4MC: A key advantage of a decentralized organization is _________. A. increased administrative costs B....
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58) Which of the following is an advantage of consolidation?

a) Consolidation of administrative functions increases unit costs

b) The smaller size of the network or system enables it to negotiate better terms from vendors

c) Capital acquisition costs are reduced, and risk is spread across a larger number of units

d) Management expertise is divided

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