Decentralization is defined as a system in which the authority for decision making is delegated to other levels of management. This is otherwise known as divisionalisation. It is the division of a business into autonomous regions or product business. Each division has its own revenue which might be a subsidiary company under the head office or profit centre or investment centre within a single company. Required: a. Discuss THREE (3) ways how decentralization system can benefit a company. b. Explain the roles of manager in each responsibility centres.

Decentralization is defined as a system in which the authority for decision making is delegated to other levels of management. This is otherwise known as divisionalisation. It is the division of a business into autonomous regions or product business. Each division has its own revenue which might be a subsidiary company under the head office or profit centre or investment centre within a single company. Required: a. Discuss THREE (3) ways how decentralization system can benefit a company. b. Explain the roles of manager in each responsibility centres.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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