Managerial Accounting by
Ray H. Garrison, Eric W.
Noreen and Peter C.
Brewer, Published by
McGraw-Hill/Irwin, 13th
edition.
It generates information
For managers/decision makers
To take business decision
A more competitive
environment emphasizing:
Higher quality products
Lower prices and costs
Global competition Business environment
changes in the past
Meeting and anticipating
customer needs twenty years
President
Treasurer Controller
Irwin/McGraw-Hill 13 © The McGraw-Hill Companies, Inc., 2002
Decentralization
Decentralization is the delegation of decision-
making authority throughout an organization.
President
Treasurer Controller
Irwin/McGraw-Hill 14 © The McGraw-Hill Companies, Inc., 2002
Decentralization
Advantages of Decentralization
1. Diversification of activities
2. Development of the Managerial Personnel
3. Effective Control and Supervision
4. Improvement of morale
5. Quick and wise decision possible
6. Better utilization of Management
7. Employee Management
8. Reduces the Burden of Top Executives
9. Flexibility etc.
Competence
Confidentiality
Integrity
Objectivity