Identify the type of responsibility center (revenue center, cost center, profit center, or investment center) for each of the following situations.
A. the accounting department for Tubelite Inc.
B. the Best Buy in Traverse City, Michigan
C. the reservation department of Allegiant airlines
D. the sales department of Four Winns
E. the Kohl’s store in Mount Pleasant, Michigan
F. The Hershey Company
G. Procter and Gamble
H. the shoe department in the Kohl’s store in Mount Pleasant, Michigan
Trending nowThis is a popular solution!
Chapter 12 Solutions
Principles of Accounting Volume 2
Additional Business Textbook Solutions
Managerial Accounting (4th Edition)
Intermediate Accounting
Horngren's Accounting (11th Edition)
Financial Accounting, Student Value Edition (4th Edition)
Financial Accounting, Student Value Edition (5th Edition)
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
- Identify the type of responsibility center (revenue center, cost center, profit center, or investment center) for each of the following situations. A. the legal department for Avon Manufacturing B. the Macys store in Mansfield, Ohio C. the food and beverage division of the Best Western D. the marketing department of the Hershey Company E. the Walmart #5030 on Central Avenue in Toledo, Ohio F. Apples Braeburn Capital Inc., where most of Apples billions of dollars are invested G. Zappos department store H. the mens clothing department in the Walmart #5030 in Toledo, Ohioarrow_forwardIn each of the following situations, identify which type of responsibility center is appropriate based on the decision-making authority the manager would possess: 1. The manager of the accounting department in Ford’s corporate office. 2. The sales manager of a Ford dealership. 3. The general manager of a Ford dealership. 4. The manager of Ford’s corporate division. 5. The production manager in a Ford plant. options: Cost Center Investment Center Profit Center Revenue Centerarrow_forwardAssume you have been hired by Cabelas Sporting Goods. 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 Cabelas 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.arrow_forward
- For each of the following managers, describe how managerial accounting could be used to satisfy strategic or operational objectives: a. The vice president of the Information Systems Division of a bank. b. A hospital administrator. c. The chief executive officer of a food company. The food company is divided into three divisions: Nonalcoholic Beverages, Snack Foods, and Fast-Food Restaurants. d. The manager of the local campus copy shop.arrow_forwardAssume 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.arrow_forwardWhat distinguishes a profit center from a cost center? a. Profit centers have revenues and expenses b. Profit centers have personnel costs Cc. ost centers are on the second floor d. Profit centers are the most important operations in the businessarrow_forward
- For each office or business segment, indicate which type of Responsibility Center it is: a. Quality control department for a golf ball manufacturer b. Consulting department of an accounting firm c. A retail location, such as the Apple Store d. The sales department at an car dealership e. Maintenance department of a luxury resort ["", "", "", "", "", ""]arrow_forwardDefine responsibility accounting, and describe the four types of responsibility centers. How can you implement responsibility accounting in a small business?arrow_forwardAssume you have just been hired as the management accountant in charge of providing your firm’s managers with product cost information. Identify the activities you might undertake for the follow-ing four value chain components: a. Research and developmentb. Productionc. Marketingd. Customer servicearrow_forward
- 34 National Detergent Company SAOG evaluate their financial performance through various reports which are provided to them. Find out one of the following accounting prepare and provide special types of reports which are used by the top level management of an organization? a. Cost accounting b. In All these accounting c. Management accounting d. Financial accountingarrow_forwardWhen you look at the organizational structure of ABC Inc., you notice that the Marketing department is divided into communications, event planning, marketing, and web content. You also see that the Accounting department has separate units for accounts payable and accounts receivable. ABC Inc. uses ________ departmentalization. Question 9 options: A) product B) geographic C) functional D) customer E) processarrow_forwardThe responsibility report of Alejandro Garcia, the manager of one of the divisions of an auto parts manufacturing company, includes profits as well as return on investment and residual income. Alejandro is most likely the manager of a(n) ________. A. revenue center B. cost center C. investment center D. profit centerarrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning