Chapter 24, Problem S24.4SE

To determine

Determination of meaning of decentralization and its advantage and list the type of responsibility centers the managers of division is managing describes the meaning of decentralization and how it works and why is it essential for effective running of the business. The Types of responsibility centers for which the manager of division shall be held responsible shall also be determined.

Requirement 1:

The need for decentralization and on what basis decentralization takes place

To determine

Requirement 2:

The Four common responsibility centers and responsibility underlying such centers shall be determined.