The chief advantages of a centralized organizational structure include having a small number of top-level managers micromanage the business by
(a) requiring lower-level subordinates to obtain top management approval before taking action on their own and personally making most decisions themselves.
(b) increased likelihood of arriving at the "best" decision from the standpoint of the company as a whole.
(c) making it easy to know who is accountable when things do not go well and reducing the potential for conflicting decisions and actions among lower-level managers who may have differing perspectives and ideas about how to tackle certain tasks or resolve particular issues.
(d) speedy decision-makingâbecause the manager-in-charge of an organizational unit has the authority to decide what to do without consulting others (there is no requirement to spend time gathering and processing information from others).
(e) faster implementation of new ideas for doing things better and increased ability to reduce the layers of managerial bureaucracy.

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.