MANAGERIAL ACCOUNTING W/CONNECT
MANAGERIAL ACCOUNTING W/CONNECT
16th Edition
ISBN: 9781260586916
Author: Garrison
Publisher: MCG CUSTOM
bartleby

Videos

Question
Book Icon
Chapter 11, Problem 1Q
To determine

Decentralization

It refers to the process of delegating authority and tasks to lower levels of management instead of being accumulated at the middle or top-level management.

Meaning of the term Decentralization.

Expert Solution & Answer
Check Mark

Answer to Problem 1Q

Solution:

Decentralization is the process of disbursing authority and tasks to those who are at lower levels in the organizational hierarchy.

Explanation of Solution

  • Decentralization takes care of this problem by ensuring delegation of work to those at middle and lower levels of management and making them accountable for the same. This can result in efficient utilization of resources, pooling of mental faculties of people at the same level, and also acts as an incentive to perform better.
  • Decentralization refers to the process of delegation of the authority and responsibilities from a central point to lower levels in the organizational structure. In an organization this can be seen in the form of corporate responsibilities and authority being given to the middle and lower level management.
  • Decentralization is also practiced in other fields such as political science, economics, team dynamics in personal and professional situations
Conclusion

Hence it can be seen that the process of delegation of the authority and responsibilities from a central point to lower levels in the organizational structure is Decentralization.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Please provide correct answer general accounting question
Chapter 17 Homework 12 1.42 points Saved Help Save & Exit Submit Check my work Exercise 17-11 (Algo) Computing product cost per unit using plantwide method and activity-based costing LO P1, P3 Consider the following data for two products of Vigano Manufacturing. Activity Budgeted Cost Activity Driver eBook Machine setup Parts handling Quality inspections Hint Total budgeted overhead $ 25,000 (20 machine setups) 20,000 (16,000 parts) 30,000 (100 inspections) $ 75,000 Unit Information Product A Units produced 2,500 units Ask Direct materials cost $ 35 per unit Product Bi 500 units $ 45 per unit $ 55 per unit 2 per unit $ 65 per unit 2.50 per unit Print References Direct labor cost Direct labor hours 1. Using a plantwide overhead rate based on 6,250 direct labor hours, compute the total product cost per unit for each product. 2. Consider the following additional information about these two products. If activity-based costing is used to allocate overhead cost, (a) compute overhead activity…
Consolidation Working Paper One Year after Acquisition, Bargain Purchase On January 1, 2022, Paxon Corporation acquired 90 percent of the outstanding common stock of Saxon Company for $1.8 billion cash. The fair value of the 10 percent noncontrolling interest in Saxon was estimated to be $150 million at the date of acquisition. Paxon uses the complete equity method to report its investment. The trial balances of Paxon and Saxon (in millions) Cash and receivables Inventory Equity method investments Investment in Saxon Dr(Cr) Paxon Saxon $3,225 $855 2,260 530 December 31, 2022, appear below: 2,441.5 Land 650 300 Buildings and equipment, net 3,600 1,150 Current liabilities (2,020) (1,200) Long-term debt (5,000) (450) (500) (50) Common stock, par value Additional paid-in capital Retained earnings, January 1 Dividends Sales revenue (1,200) (200) (2,410) (600) 500 250 (30,000) (12,000) Equity in net income of Saxon (616.5) Gain on acquisition (250) Gain on sale of securities (150) Cost of…

Chapter 11 Solutions

MANAGERIAL ACCOUNTING W/CONNECT

Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Elements of cost | Direct and Indirect: Material, Labor, & Expenses; Author: Educationleaves;https://www.youtube.com/watch?v=UFBaj6AHjHQ;License: Standard youtube license