Centralized operations : In a company where the major plans and operating decisions are controlled by the top level management, such a company is said to have centralized operations. Decentralized operations : In a company where the plans and operating decisions are delegated to the divisional managers, such a company is said to have decentralized operations. To distinguish: Centralized operations from decentralized operations

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Answer 1

Question

Chapter 23, Problem 1DQ

To determine

Centralized operations: In a company where the major plans and operating decisions are controlled by the top level management, such a company is said to have centralized operations.

Decentralized operations: In a company where the plans and operating decisions are delegated to the divisional managers, such a company is said to have decentralized operations.

To distinguish: Centralized operations from decentralized operations

Expert Solution & Answer

Explanation of Solution

Differences between centralized and decentralized operations:

Centralized Operations	Decentralized Operations
The major operating decisions are controlled by top level management.	The major operating decisions are delegated to divisional managers.
Centralized operations are preferable by small businesses, where one man can handle all the operations.	Decentralized operations are delegated to the managers with expertise in the respective production lines and services.
Since the business is small and can be controlled by one person, it is easy to maintain the operations, and not much experience is necessary.	Since the product lines and numerous, top level management cannot alone control all the operations, and may not have expertise in all departments.

Table (1)

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Sauerbraten Corp. reported 2007 sales ($ in millions) of $2,157 and a cost of goods sold of $1,827. The company uses the LIFO method for inventory valuation. It discloses that if the FIFO inventory valuation method had been used, inventories would have been $63.3 million and $56.8 million higher in 2007 and 2006, respectively. If Sauerbraten used the FIFO method exclusively, it would have reported 2007 gross profit closest to? a. $324. b. $330. c. $337.

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General accounting question

Answer 2

Question

Chapter 23, Problem 1DQ

To determine

Centralized operations: In a company where the major plans and operating decisions are controlled by the top level management, such a company is said to have centralized operations.

Decentralized operations: In a company where the plans and operating decisions are delegated to the divisional managers, such a company is said to have decentralized operations.

To distinguish: Centralized operations from decentralized operations

Expert Solution & Answer

Explanation of Solution

Differences between centralized and decentralized operations:

Centralized Operations	Decentralized Operations
The major operating decisions are controlled by top level management.	The major operating decisions are delegated to divisional managers.
Centralized operations are preferable by small businesses, where one man can handle all the operations.	Decentralized operations are delegated to the managers with expertise in the respective production lines and services.
Since the business is small and can be controlled by one person, it is easy to maintain the operations, and not much experience is necessary.	Since the product lines and numerous, top level management cannot alone control all the operations, and may not have expertise in all departments.

Table (1)

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Answer 3

Question

Chapter 23, Problem 1DQ

To determine

Centralized operations: In a company where the major plans and operating decisions are controlled by the top level management, such a company is said to have centralized operations.

Decentralized operations: In a company where the plans and operating decisions are delegated to the divisional managers, such a company is said to have decentralized operations.

To distinguish: Centralized operations from decentralized operations

Expert Solution & Answer

Explanation of Solution

Differences between centralized and decentralized operations:

Centralized Operations	Decentralized Operations
The major operating decisions are controlled by top level management.	The major operating decisions are delegated to divisional managers.
Centralized operations are preferable by small businesses, where one man can handle all the operations.	Decentralized operations are delegated to the managers with expertise in the respective production lines and services.
Since the business is small and can be controlled by one person, it is easy to maintain the operations, and not much experience is necessary.	Since the product lines and numerous, top level management cannot alone control all the operations, and may not have expertise in all departments.

Table (1)

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Answer 4

Question

Chapter 23, Problem 1DQ

To determine

Centralized operations: In a company where the major plans and operating decisions are controlled by the top level management, such a company is said to have centralized operations.

Decentralized operations: In a company where the plans and operating decisions are delegated to the divisional managers, such a company is said to have decentralized operations.

To distinguish: Centralized operations from decentralized operations

Expert Solution & Answer

Explanation of Solution

Differences between centralized and decentralized operations:

Centralized Operations	Decentralized Operations
The major operating decisions are controlled by top level management.	The major operating decisions are delegated to divisional managers.
Centralized operations are preferable by small businesses, where one man can handle all the operations.	Decentralized operations are delegated to the managers with expertise in the respective production lines and services.
Since the business is small and can be controlled by one person, it is easy to maintain the operations, and not much experience is necessary.	Since the product lines and numerous, top level management cannot alone control all the operations, and may not have expertise in all departments.

Table (1)

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Answer 5

Chapter 23, Problem 1DQ

To determine

Centralized operations: In a company where the major plans and operating decisions are controlled by the top level management, such a company is said to have centralized operations.

Decentralized operations: In a company where the plans and operating decisions are delegated to the divisional managers, such a company is said to have decentralized operations.

To distinguish: Centralized operations from decentralized operations

Expert Solution & Answer

Explanation of Solution

Differences between centralized and decentralized operations:

Centralized Operations	Decentralized Operations
The major operating decisions are controlled by top level management.	The major operating decisions are delegated to divisional managers.
Centralized operations are preferable by small businesses, where one man can handle all the operations.	Decentralized operations are delegated to the managers with expertise in the respective production lines and services.
Since the business is small and can be controlled by one person, it is easy to maintain the operations, and not much experience is necessary.	Since the product lines and numerous, top level management cannot alone control all the operations, and may not have expertise in all departments.

Table (1)

Answer 6

Chapter 23, Problem 1DQ

To determine

Centralized operations: In a company where the major plans and operating decisions are controlled by the top level management, such a company is said to have centralized operations.

Decentralized operations: In a company where the plans and operating decisions are delegated to the divisional managers, such a company is said to have decentralized operations.

To distinguish: Centralized operations from decentralized operations

Expert Solution & Answer

Explanation of Solution

Differences between centralized and decentralized operations:

Centralized Operations	Decentralized Operations
The major operating decisions are controlled by top level management.	The major operating decisions are delegated to divisional managers.
Centralized operations are preferable by small businesses, where one man can handle all the operations.	Decentralized operations are delegated to the managers with expertise in the respective production lines and services.
Since the business is small and can be controlled by one person, it is easy to maintain the operations, and not much experience is necessary.	Since the product lines and numerous, top level management cannot alone control all the operations, and may not have expertise in all departments.

Table (1)

Answer 7

Chapter 23, Problem 1DQ

To determine

Centralized operations: In a company where the major plans and operating decisions are controlled by the top level management, such a company is said to have centralized operations.

Decentralized operations: In a company where the plans and operating decisions are delegated to the divisional managers, such a company is said to have decentralized operations.

To distinguish: Centralized operations from decentralized operations

Answer 8

Expert Solution & Answer

Explanation of Solution

Differences between centralized and decentralized operations:

Centralized Operations	Decentralized Operations
The major operating decisions are controlled by top level management.	The major operating decisions are delegated to divisional managers.
Centralized operations are preferable by small businesses, where one man can handle all the operations.	Decentralized operations are delegated to the managers with expertise in the respective production lines and services.
Since the business is small and can be controlled by one person, it is easy to maintain the operations, and not much experience is necessary.	Since the product lines and numerous, top level management cannot alone control all the operations, and may not have expertise in all departments.

Table (1)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

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Concept explainers

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