ECONOMICS

Detailed explanation-1: -Performance evaluation of decentralized operations is the method where the responsibility of all taking all the major planning and operating decisions of the particular segment are delegated to the managers of that specific business segment of the company.

Detailed explanation-2: -Answer: Many companies break ROI down into two ratios; operating profit margin and asset turnover. Each of these measures can be used to evaluate strengths and weaknesses of ROI within each division.

Detailed explanation-3: -Which of the following techniques would be best for evaluating the management performance of a department that is operated as a cost center? Variance analysis.

Detailed explanation-4: -Advantages of decentralized organizations include increased expertise at each division, quicker decisions, better use of time at top management levels, and increased motivation of division managers.