________ means minimum constraints and maximum freedom for managers at the lowest levels of an organisation to make decisions and to take actions.
A)Total decentralisation
B)Use of negotiated transfer pricing
C)Use of market-based transfer pricing
D)Total centralisation

Question

Quizplus · Accepted Answer

Total decentralisation allows managers at the lowest levels of an organisation to have minimum constraints and maximum freedom to make decisions and take actions. This means that decision-making and control are delegated to lower levels of the organisation, allowing for greater flexibility and responsiveness to local conditions. In contrast, total centralisation would mean that all decisions and control are consolidated at the top levels of the organisation, which could limit the ability of lower-level managers to act autonomously. The use of transfer pricing methods (such as negotiated or market-based) is related to how different business units within a company are compensated for goods or services provided to other units, but it is not directly related to levels of decentralisation or centralisation.

________ Means Minimum Constraints and Maximum Freedom for Managers at the Lowest