57 discuss potential problems and disadvantages to an organization that decentralize 4308006

57 discuss potential problems and disadvantages to an organization that decentralize 4308006

57) Discuss potential problems and disadvantages to an organization that decentralizes its operations.

58) The performance reports of cost centers only include those costs incurred within each individual cost center.

59) A performance report compares expected revenues and expenses against budgeted figures for each responsibility center that the manager evaluates in an organization.

60) The difference between actual results and budget results is known as decentralization.

61) Cost center performance reports typically focus on the static budget variance.

62) Management by exception is used to determine which large variances to investigate.

63) Revenue center performance reports are reports that list the variances between actual sales and budgeted sales.

64) Management by exception saves management time because managers in revenue centers only focus on unfavorable variances.

65) A segment margin is the operating income generated by a profit or investment center before subtracting common allocated fixed costs to the center.

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