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Lyrx [107]
3 years ago
15

Decentralization is usually desirable in a company when:

Business
1 answer:
Leokris [45]3 years ago
5 0

Answer:

The answer is a. The company is operating in a pure competition.

Explanation:

The other options are incorrect. Decentralisation of power has only a little to do with the geographical location and with the number of employees.

Besides, the employees must be accountable for the responsibilities they take.

However, when the competition is severe, decentralisation is useful as it motivates people and increase the creativity and the decision making capacity of the individuals.

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<u>Analysis of total cost over the 5 year period</u>

                                                      Retain Old Machine   Buy New Machine

<em>Variable / Incremental Operating</em>

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Old Machine                                          124,750    

New Machine                                                                              97,800

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Buy : Lump sum written off                                                         8,430

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Total Cost                                               133,180                       122,820

The use of new machine will result in lower cost for the next 5 years.The incremental cost is ($10,360)

8 0
3 years ago
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