e i Standard costs Actual costs 36,000 hours at $22.00 35,000 hours at $23.00 What is the direct labor time variance a. $36,000 unfavorable b. $35,000 unfavorable c. $23,000 favorable d. $22,000 favorable ness? 13. Which of the following would be most effective in a small owner/manager-operated busi a. Profit centers b. Centralization c. Investment centers d. Cost centers Businesses that are separated into two or more manageable units in which managers have authority and responsibility for operations are said to be: a. Decentralized b. Consolidated c. Diversified d. Centralized 14. Which is the best example of a decentralized operation? a. One owner who prepares plans and makes decisions for the entire company. b. Each unit is responsible for their own operations and decision making. c. In a major company, operating decisions are made by top management. d. None of the above. All are examples of a centralized management. 15. 16. All of the following are advantages of decentralization except: Managers make better decisions when closer to the operation of the company. Expertise in all areas of the business is difficult, decentralization makes it better to delegate certain responsibilities. Each decentralized operation purchases their own assets and pays for operating costs. Decentralized managers can respond quickly to customer satisfaction and quality service. a. b. c. d. 17. Which of the following is a disadvantage of decentralization? Decisions made by one manager may negatively affect the profitability of the entire a. company b. Helps retain quality managers. c. Decision making by managers closest to the operations. d. Managers are able to acquire expertise in their areas of responsibility