Decentralization in Accounting: Advantages & Disadvantages


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What management approach focuses decision-making on top management? Under this approach, there is concentration of control under a single authority.

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1. What term is used to describe the day-to-day problem solving of operations by top management?

2. Which of the following is NOT an advantage of decentralization?

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About This Quiz & Worksheet

This quiz/worksheet set allows you to find out what you know about decentralization in management. These questions will focus on what this is and what the advantages and disadvantages of it are.

Quiz & Worksheet Goals

Use this assessment to review your knowledge of:

  • The advantages of decentralization
  • Day to day problem solving by management
  • The management approach with a focus on top-level decision makers

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson, such as the advantages and disadvantages of decentralized management
  • Critical thinking - apply relevant concepts to examine information about the disadvantages to decentralized management in a different light
  • Information recall - access the knowledge you've gained regarding the term for the day to day problem solving that management must do

Additional Learning

To get a better understanding of this management philosophy, review the lesson titled Decentralization in Accounting: Advantages & Disadvantages. You will be exposed to:

  • Benefits and drawbacks associated with lower-level managers in decentralized operations
  • Employee development advantages in these operations
  • How decentralization affects diversification