Answer:
This can be due to the method of allocating cost.
Explanation:
In the given scenario a division in a decentralised company earned the largest amount of income from operations, yet it was the least profitable.
This can be as a result of the cost allocation method the company uses.
If the company uses a cost allocation method where cost from other division is paid for by the division with largest income. The result will be that the other divisions that generate less income will appear to be more profitable.
The remedy for this is to use activity based costing. Where cost is allocated based on the level of activity of a division.
That way divisions will only pay for cost associated with their activity
When a new variety of Envirokids whole-grain breakfast cereals is first introduced, consumers will most likely engage in "limited decision making" when deciding whether or not to purchase this new product.
<h3>What is limited decision making?</h3>
When buying things that need a reasonable amount of time and effort to compare models and brands before making a decision, consumers use limited decision-making.
Some features of limited decision making are-
- When you require knowledge on an unexpected brand inside a well-known product area, perhaps. takes some time to obtain the necessary information.
- Examples include clothing, when the brand is unknown but the product class is known.
The three categories of decisions-making are-
- Organisational direction is determined by strategic decisions.
- Decisions made at the tactical level affect how tasks will be completed.
- Last but not least, operational decisions are those that staff members take on a daily basis to manage the company.
To know more about use of limited decision making while purchasing, here
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Answer: Independent Auditors
Explanation: Independent Auditors are professionals in the field of accounting such as chattered accountants that are employed to check the business and financial records of an organization to which they don't work in. Auditors are used to ensure accuracy in records and also to ensure no financial mismanagement or fraud.
Answer:
active partners are involved in daily running of the business.
sleeping partner are not involved in daily running of the business
Explanation:
Active partners are always involved in management while sleeping partners are not and mostly consists of financing not the business.
Answer:
Hope you have a good day also!!!
Explanation:
