Principles of Management Accounting

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Decentralization refers to:

a. reporting for the company as a whole.
b. focusing reporting on parts of the company.
Selected: c. the delegation of decision-making authority throughout an organization. This answer is correct.
d. differences in organizations.

Correct! Within a decentralized company, decision making occurs in each division or segment, not by executives at the corporate administration of the company. This is important in diversified or multinational firms as managers of various divisions are considered to be most knowledgeable about operations.

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