A decentralized organizational structure is predicated on the belief that
A. lower-level managers and employees should go up the ladder of command for approval on most all strategic and operating issues of much importance.
B. most company personnel have neither the time nor the inclination to direct and properly control the work they are performing and that they lack the knowledge and judgment to make wise decisions about how best to do their work.
C. decision-making authority should be pushed down to the lowest organizational level capable of making timely, informed, and competent decisions.
D. top executives should establish a collegial, collaborative culture where decisions are made by general consensus on what to do and when.
E. strict enforcement of detailed procedures backed by rigorous managerial oversight is necessary because company personnel cannot be counted on to act wisely or keep costs to a bare bones level.
Answer: C
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a. Cash. b. Sales. c. Freight-In. d. Purchases.
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When a firm reacquires common shares under the Par Value Method for Repurchased Shares:
a. the Treasury Stock—Common account has a credit balance that reduces the amount of Marketable Securities reported on the balance sheet. b. the accountant debits the Treasury Stock—Common account for the par value of the repurchased shares, debits Additional Paid-In Capital for the difference between the original issue price of the shares and par value, and plugs Retained Earnings for any difference between the repurchase price. c. the accountant debits the Common Stock account for the par value of the repurchased shares, debits Additional Paid-In Capital for the difference between the original issue price of the shares and par value, and plugs Retained Earnings for any difference between the repurchase price. d. the Treasury Stock—Common account has a credit balance and therefore reduces total shareholders' equity. e. the accountant credits the Common Stock account for the par value of the repurchased shares, credits Additional Paid-In Capital for the difference between the original issue price of the shares and par value, and plugs Retained Earnings for any difference between the repurchase price.