Which of the following is an advantage of decentralization?

Study for the ASU ACC241 Exam. Prepare with targeted flashcards and multiple choice questions designed to solidify your grasp on accounting information. Dive deep into exam content and increase your chances of success!

Decentralization offers several advantages, one of which is its ability to encourage customer focus. By allowing decision-making authority to be distributed among various departments or local managers, organizations can respond more swiftly to the needs and preferences of customers. This close proximity to the customer base often leads to enhanced service quality and more tailored offerings, as those with direct interaction with customers can provide insights and make decisions that align with customer expectations.

In contrast, centralized decision-making could lead to a disconnect between the organization and its customers, as decisions are often made at a higher level, far from the front lines. Poor resource allocation typically arises from centralized systems that may not be attuned to the specific needs of different departments or regions. Moreover, slower decision processes are a common drawback of centralization, where all decisions funnel through higher management, delaying responses to changing conditions.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy