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Which of the following is true of decentralization? a. Decentralization allows higher management to make better decisions by using local information Ob. Under decentralization, lower-level
Which of the following is true of decentralization? a. Decentralization allows higher management to make better decisions by using local information Ob. Under decentralization, lower-level managers are responsible only for implementing decisions. Oc. It protects segments of a company from competitive pressures. d. Decentralization allows only the CEO of a company to make all important decisions. e. It is usually achieved by creating units called divisions. Which of the following formulas computes residual income? a. Residual Income = Operating Income / Average Operating Assets b. Residual Income = (Minimum Rate of Return x Average Operating Assets) /Operating Income c. Residual Income = Operating Income - Return on Investment d. Residual Income = Operating Income - (Minimum Rate of Return x Average Operating Assets) e. Residual Income = After-tax Operating Income / (Actual Percentage Cost of Capital x Total Capital Employed)
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