Effective decentralization is essential for which of the following management accounting practices in organizations?
A) Break-even analysis.
B) Product costing.
C) Segment reporting.
D) Activity-based costing.

Question

Quizplus · Accepted Answer

Segment reporting involves the decentralization of decision-making and the delegation of responsibilities to individual business units or segments. Effective decentralization is essential to ensure that segment managers have the authority and flexibility to make decisions that are in the best interests of their segment and the organization as a whole, without undue interference or micromanagement from senior management. Break-even analysis, product costing, and activity-based costing can also benefit from decentralization, but they are not as directly dependent on it as segment reporting.

Effective Decentralization Is Essential for Which of the Following Management