“I’m going to focus on the customers of my business and leave cost-allocation issues to my accountant.” Do you agree with this comment by a division president? Explain.
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“I’m going to focus on the customers of my business and leave cost-allocation issues to my accountant.” Do you agree with this comment by a division president? Explain.
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- Elmhurst Corporation is considering changes to its responsibility accounting system. Which of the following statements is/are correct for a responsibility accounting system. i. In a cost center, managers are responsible for controlling costs but not revenue. ii. The idea behind responsibility accounting is that a manager should be held responsible for those items that the manager can control to a significant extent. iii. To be effective, a good responsibility accounting system must help managers to plan and to control. iv. Costs that are allocated to a responsibility center are normally controllable by the responsibility center manager. 1. I and II only are correct. 2. II and III only are correct. 3. I, II, and III are correct. 4. I, II and IV are correct.Which of the following statements is true? A cost center is a responsibility center. The basic objective of responsibility accounting is to charge each manager with those costs and/or revenues over which he has control. Under a responsibility accounting system, fewer expenses are charged against managers; the higher one moves upward in an organization.As manager of department B in MarIeys Manufacturing, based on the costs you identified in the previous exercise for further research, how does this impact the financial performance of your department, and what might be some questions you want to ask or solutions you might propose to Marleys management?
- Assume you have been hired by Hilton Hotels and Resorts. As part of your new role in the accounting department, you have been tasked to set up a responsibility accounting structure for the company. As your first task, your supervisor has asked you to give an example of a cost center, profit center, and an investment center within the Hilton organization. Your supervisor is a little unsure of the difference between a profit center and investment center and would like you to explain the difference.Responsibility centers. Elmhurst Corporation is considering changes to its responsibility accounting system. Which of the following statements is/are correct for a responsibility accounting system. In a cost center, managers are responsible for controlling costs but not revenue. The idea behind responsibility accounting is that a manager should be held responsible for those items that the manager can control to a significant extent. To be effective, a good responsibility accounting system must help managers to plan and to control. Costs that are allocated to a responsibility center are normally controllable by the responsibility center manager. I and II only are correct. II and III only are correct. I, II, and III are correct. I, II and IV are correct.Types of decisions that managers make include all of the following except: a.choosing which products to sell b.designing performance evaluation systems c.setting tax rates d.hiring employees e.All of these are decisions that managers make
- I'm having trouble determining the profitability of the firm's information systems services and e-commerce consulting activities in problem 3. Could you help me solve this problem? I'm confused by the activity-based costing system and need to find the total billings, income, and profitability percentage.Why are companies divided into departments for the purpose of management control? What are some of the challenges to preparing departmental reports? Is it possible to evaluate a cost center's profitability?2. Why do managers use a standard cost system to control business activities?a) Setting standards required __________________ and ____________________ among different divisions and functions.
- (Ch 8) Which departments in an organization produce services for external customers? Question 1 options: Support departments. Dual-rate departments. Operating departments. Sales departments. (Ch 8) When allocating support department costs, managers must identify cost pools. The choice of cost pools is: Question 2 options: not influenced by the allocation base. not important, because all support department costs will eventually be allocated anyway. influenced by the design of the accounting information system. determined by whether a company uses IFRS or ASPE.( separation of duties) explain how can they implemented and how they make accountant job more efficient?Why are companies divided into departments for the purpose of management control? Is it possible to evaluate a cost center's profitability? Explain.