
Managerial Accounting (4th Edition)
4th Edition
ISBN: 9780133428377
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
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Question
Chapter 10, Problem 1QC
To determine
To identify: On what basis companies often decentralize their operations.
Expert Solution & Answer

Answer to Problem 1QC
Option d. Companies often decentralize their operations by product line, customer base, and geographic area.
Explanation of Solution
Decentralization means delegation of decision-making authority and responsibility to lower levels. But delegating the authorities can be on several bases. And the one which best suits the organization is selected for that organization.
Now analyzing the given options:
- a. Geographic area is the incorrect option as along with this there are other bases too like product line and customer base on which companies can often decentralize their operations.
- b. Product line is the incorrect option as along with this there are other bases too like customer base and geographic area on which companies can often decentralize their operations.
- c. Customer base is the incorrect option as along with this there areother bases too like product line and geographic area on which companies can often decentralize their operations.
- d. All of the above is the correct option as there is not only a single basis on which companies often decentralize their operations but in fact, there are several bases like product line, customer base, geographic area and distribution channel.
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Chapter 10 Solutions
Managerial Accounting (4th Edition)
Ch. 10 - Prob. 1QCCh. 10 - Prob. 2QCCh. 10 - Prob. 3QCCh. 10 - Prob. 4QCCh. 10 - Prob. 5QCCh. 10 - Prob. 6QCCh. 10 - Prob. 7QCCh. 10 - Prob. 8QCCh. 10 - Prob. 9QCCh. 10 - Prob. 10QC
Ch. 10 - Prob. 10.1SECh. 10 - Prob. 10.2SECh. 10 - Prob. 10.3SECh. 10 - Prob. 10.4SECh. 10 - Prob. 10.5SECh. 10 - Prob. 10.6SECh. 10 - Prob. 10.7SECh. 10 - Prob. 10.8SECh. 10 - Prob. 10.9SECh. 10 - Prob. 10.10SECh. 10 - S10-11 Interpret a performance report (Learning...Ch. 10 - Prob. 10.12SECh. 10 - S10-13 Classify KPIs by balanced scorecard...Ch. 10 - Prob. 10.14SECh. 10 - Prob. 10.15SECh. 10 - Prob. 10.16AECh. 10 - E10-17A Complete and analyze a performance report...Ch. 10 - Prob. 10.18AECh. 10 - Prob. 10.19AECh. 10 - Prob. 10.20AECh. 10 - Prob. 10.21AECh. 10 - E10-22A Comparison of ROI and residual income...Ch. 10 - Prob. 10.23AECh. 10 - E10-24A Prepare a flexible budget performance...Ch. 10 - E10-25A Complete and analyze a performance report...Ch. 10 - E10-26A Work backward to find missing values...Ch. 10 - Prob. 10.27AECh. 10 - Prob. 10.28AECh. 10 - Prob. 10.29BECh. 10 - Prob. 10.30BECh. 10 - Prob. 10.31BECh. 10 - Prob. 10.32BECh. 10 - Prob. 10.33BECh. 10 - Prob. 10.34BECh. 10 - Prob. 10.35BECh. 10 - Prob. 10.36BECh. 10 - Prob. 10.37BECh. 10 - Prob. 10.38BECh. 10 - Prob. 10.39BECh. 10 - Prob. 10.40BECh. 10 - Prob. 10.41BECh. 10 - Prob. 10.42APCh. 10 - P10-43A Prepare and interpret a performance report...Ch. 10 - Prob. 10.44APCh. 10 - Prob. 10.45APCh. 10 - Prob. 10.46APCh. 10 - P10-47A Evaluate subunit performance (Learning...Ch. 10 - Prob. 10.48BPCh. 10 - Prob. 10.49BPCh. 10 - Prob. 10.50BPCh. 10 - Prob. 10.51BPCh. 10 - Prob. 10.52BPCh. 10 - P10-53B Evaluate subunit performance (Learning...
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