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Need help with the following question Decentralizing Operations.Burton Electronics produces radios, computers, and navigation systems. Although all high level decisions are made at company headquarters
Need help with the following question
Decentralizing Operations.Burton Electronics produces radios, computers, and navigation systems. Although all high level decisions are made at company headquarters by top management, rapid expansion and increasingly specialized products have caused the company to consider decentralizing into three divisions. Each division manager would be responsible for costs, revenues, and investments in assets.
How should the company classify each division, as a cost center, profit center, or investment center? Explain.
What are the potential advantages of decentralizing?
What are the potential disadvantages of decentralizing?
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Governmental And Nonprofit Accounting Theory And Practice
Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,
9th Edition
0132552728, 9780132552721
