What are the potential negative effects of decentralization

Assignment Help Accounting Basics
Reference no: EM131798226

Question - Ladue, Inc. has used a decentralized form of organizational structure for the past five years. The controller, Ms. Trevino, has noticed that some of the divisions are still using fixed assets that are fully depreciated and that there has been little acquisition activity in these divisions. Coupled with this are very high ROIs, especially when compared to the other divisions that seem to have a regular program of disposition and replacement of fixed assets.

She takes her concerns and observations to the Financial Vice President who says he will review her findings and look into the problem.

1) What are the potential negative effects of decentralization?

2) Specifically discuss the issues involved in suboptimization.

Reference no: EM131798226

Questions Cloud

Explain how the pdsa model might be applied : Based on your selected area of need, define a practice problem and create a corresponding mission statement.
What is the variable cost of producing each anchor : Harbor Manufacturing's average cost per anchor is $50.00. If $20,000 of the total costs are fixed, what is the variable cost of producing each anchor
Aggregate price index for lindsay portfolio : a. Compute and interpret the unweighted aggregate price index for Lindsay's portfolio, using 2005 as the base year.
What is the signal strength around the area : MTCM5049What are the specifications for your site and what are your link budget requirements and What is the signal strength around the area measure both uplink
What are the potential negative effects of decentralization : Ladue, Inc. has used a decentralized form of organizational structure for the past five years. What are the potential negative effects of decentralization
What will the new stock price be : What will the new stock price be if they borrow $200 million and repurchase stock (assuming rational investors)?
Determine the total amount of dividends to be paid : Determine the total amount of dividends to be paid to the preferred shareholders and common shareholders
Write comprehensive critiqued evaluation of your states doh : From the third e-Activity, give a comprehensive critiqued evaluation of your state's DOH disease-management protocols.
What are the similarities among the theories : Because nursing practice must always have a foundation, building practice on theory helps guide effective decision making.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd