Decentralization may increase a firm's costs because _____.
A)managers duplicate services that might be less expensive if centralized
B)information costs rise as responsibility reports are needed
C)managers duplicate services that might be less expensive if centralized and information costs rise as responsibility reports are needed
D)none of these answers is correct

Question

Quizplus · Accepted Answer

Decentralization often involves duplicating services that were previously centralized, which can lead to increased costs. Additionally, when responsibility is spread out amongst different managers, there may be a need for increased reporting and information sharing, which can also drive up costs. Both of these factors contribute to the increased costs of decentralization.

Decentralization May Increase a Firm's Costs Because _____