1. All of the following are disadvantages of decentralization EXCEPT for ________.
Local managers make decisions that are not in the organization's best interests.
Managers spend time negotiating transfer prices for goods and services transferred between divisions and segments.
Local managers duplicate services.
Local managers have more authority and greater levels of job satisfaction.
2. From the view of the company as a whole, managers should accept investment projects that earn more than the ________. ________ should not be used for investment decisions.
return on investment; Return on sales
return on sales; Capital turnover
cost of capital; Return on investment
capital turnover; Return on sales
3. An example of a nonfinancial goal is ________.
increase customer satisfaction
increase profits
increase segment margin
increase required return on investment