HORNGRENS COST ACCOUNTING W/ACCESS
HORNGRENS COST ACCOUNTING W/ACCESS
16th Edition
ISBN: 9781323687604
Author: Datar
Publisher: PEARSON
Question
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Chapter 22, Problem 22.18E

A.

To determine

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 determine

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 determine

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 determine

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

HORNGRENS COST ACCOUNTING W/ACCESS

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