Decentralization

Decentralization is the process in which the decisions are made by the front line managers and staff. Decentralization is helpful in making fast and quick decision of company. Decentralization also encourages the low level staff to take decision independently instead of being dependent on senior authority.

Negotiated Transfer Pricing

Negotiated Transfer Pricing: Definition and Explanation of negotiated transfer pricing: A negotiated transfer pricing results from discussions between the selling and buying divisions. Negotiated transfer prices have many important advantages.  First, this approach preserves the autonomy of the divisions and is consistent with the

Criticism/Disadvantages or Limitations of Return on Investment (ROI) Method of Performance Evaluation

Criticism/Disadvantages or Limitations of Return on Investment (ROI) Method of Performance Evaluation: Learning Objectives: What are the limitations of return on investment method of performance evaluation? Although the return on investment is widely used in evaluating performance, it is not a perfect tool. The

Decentralization in Organizations

Decentralization in Organizations: Learning Objectives: Define and explain the term “decentralization”. What are the advantages and disadvantages of decentralization in business organizations? What are business segments? Define and explain cost, profit, and investment centers. Definition and Explanation of Decentralization A decentralized organization is one