A.
Centralization:
The centralization refers to that system in which the main part of an organization is responsible to make the decisions. This means the whole responsibility lies only with the main unit of an organization.
Decentralization:
The decentralization means that the lower levels of an organization are given freedom to take their decisions. This means the responsibility in an organization is shared or is given to the smaller and subsidiary levels.
To explain: Whether the Company BP has a centralized or a decentralized structure.
B.
To explain: Whether the Company EI has a centralized or a decentralized structure and the costs and benefits of that type of structure.
C.
To explain: The hotels in each chain can be considered as the cost centers, revenue centers, profit centers and investment centers and the way in which the evaluation of property managers can tie to it.
D.
To explain: The steps the management of HH makes to improve goal congruence between property managers and the larger company.
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Chapter 22 Solutions
EBK HORNGREN'S COST ACCOUNTING
- Dull Corporation produces a single product and has the following cost structure: Number of units produced each year 6,000 Variable costs per unit: Direct materials Direct labor $43 $13 $5 Variable manufacturing overhead Variable selling and administrative expense $1 Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense The absorption costing unit product cost is: A. $95 B. $119 C. $61 D. $56 $204,000 $138,000arrow_forwardWhat is its gross income for the year of this general accounting question?arrow_forwardCan you please solve this questionsarrow_forward
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