Classifying responsibility centers Each of the following managers works for a national chain of hotels and has been given certain decision-making authority. Classify each of the managers according to the type of responsibility center he or she probably manages. a. Manager of the Central Reservation Office b. Managers of various corporate—owned hotel locations c. Managers of the Northeast and Southeast Corporate Divisions d. Manager of the Housekeeping Department at one hotel e. Manager of the complimentary breakfast buffet at one hotel

Classifying responsibility centers Each of the following managers works for a national chain of hotels and has been given certain decision-making authority. Classify each of the managers according to the type of responsibility center he or she probably manages. a. Manager of the Central Reservation Office b. Managers of various corporate—owned hotel locations c. Managers of the Northeast and Southeast Corporate Divisions d. Manager of the Housekeeping Department at one hotel e. Manager of the complimentary breakfast buffet at one hotel

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 3TP: Kanye Achebe just became the operations manager of Weston Transportation. Weston transports large...

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Classifying responsibility centers Each of the following managers works for a national chain of hotels and has been given certain decision-making authority. Classify each of the managers according to the type of responsibility center he or she probably manages. Manager of the Central Reservation Office Managers of various corporate-owned hotel locations Managers of the Northeast and Southeast Corporate Divisions Manager of the Housekeeping Department at one hotel Manager of the complimentary breakfast buffet at one hotel
Goodworks Software operates stores within five regions. Regional managers are held accountable for marketing, advertising, and sales decisions, and all costs incurred within their region. In addition, regional managers decide whether new stores will open, where the stores will be located, and whether the stores will lease or purchase the facilities. Store managers, in contrast, are accountable for marketing, advertising, and sales decisions, and costs incurred within their stores. Ideally, on the basis of this information, what type of responsibility center should the software company use to evaluate its regions and stores? (1) Regions; (2) Stores (1) Profit center; (2) Profit center (1) Profit center; (2) Revenue center (1) Investment center; (2) Cost center (1) Investment center; (2) Profit center (1) Profit center; (2) Cost center
For each of the following managers, describe how managerial accounting could be used to satisfy strategic or operational objectives:1. The vice president of the Information Systems Division of a bank.2. A hospital administrator.3. The chief executive officer of a food company. The food company is divided into three divisions: Nonalcoholic Beverages, Snack Foods, and Fast-Food Restaurants.4. The manager of the local campus copy shop.
MULTIPLE CHOICE Which of the following is the main assumption that is made about managers in general in support of decentralization? Managers at the local/divisional level will act in the best interest of the organization Top managers at corporate headquarters will act in the best interest of the organization Top managers at corporate headquarters have access to better information for operational decisions Managers at the local/divisional level have access to better information for operational decisions Kirkland Company has several service departments that provide services to each other as well as to operating departments within the company. Which method would be least accurate in allocating the company's service department costs? The sequential method The direct method The step-down method The reciprocal method Which of the following is an example of a committed fixed cost? A training program for salespersons Executive travel expenses Property taxes on the factory…
In 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 Center
For the following activitie, explain which of the objectives of managerial accounting activity is involved. In some cases, several objectives may be involved. Comparing a Sheraton Hotel’s room rate structure, occupancy rate, and restaurant patronage with industry averages.
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.
For the following situations, identify whether the description is probably a centralized or decentralized organization. A. Seaside Furniture, a small builder of side tables managed solely by its sole proprietor B. Harbor Marketing, which wants Advertising Team Leaders to be able to respond quickly to needs of potential clients so Team Leaders have the authority to make decisions about advertising and pricing C. Coutures Creations, with a single owner who manages the production, accounting, engineering, sales, and other administrative functions D. British Navy E. McDonalds franchise #3101 in Canton. Ohio F. United States Army
For the following situations identify whether the description is a centralized or decentralized organization. A. the United States Navy B. Farahs Dominos franchise store C. Dominos Pizza D. Middies Furniture, which is divided into separate operating units, such as living room, kitchen, flooring E. the local community college, which has a single payroll department, a single administrative headquarters, and a single human resources department since it flattened its organization structure F. Conner Corporation, which promotes managers from within the organization whenever possible and which has formal training programs for lower-level managers
Kanye Achebe just became the operations manager of Weston Transportation. Weston transports large crates for online companies and transports containers overseas. Kanye would like to evaluate each divisional manager on a basis similar to segmental reporting required by generally accepted accounting principles (GAAP) financial statements contained in annual reports. These data include a presentation of net sales, operating profit and loss before and after taxes, total identifiable assets, and depreciation for segment reported. Kanye thinks that evaluating business division managers by the same criteria as the total company is appropriate. A. Explain why you think the chief financial officer (CFO) disagrees and tells Kanye that publicly reporting information might demotivate managers. B. For better evaluation of the managers, what type of information should Kanye propose that the CFO might accept?
Profit center responsibility reporting for a service company Red Line Railroad Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance, using operating income as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31: The company operates three support departments: Shareholder Relations, Customer Support, and Legal. The Shareholder Relations Department conducts a variety of services for shareholders of the company. The Customer Support Department is the companys point of contact for new service, complaints, and requests for repair. The department believes that the number of customer contacts is a cost driver for this work. The Legal Department provides legal services for division management. The department believes that the number of hours billed is a cost driver for this work. The following additional information has been gathered: Instructions 1. Prepare quarterly income statements showing operating income for the three divisions. Use three column headings: East, West, and Central. 2. Identify the most successful division according to the profit margin. Round to the nearest whole percent. 3. Provide a recommendation to the CEO for a better method for evaluating the performance of the divisions. In your recommendation, identify the major weakness of the present method.
Examine the placement of the manager of HR systems in the organization chart of Figure 14.2 (pg. 541) and review the typical functional responsibilities of this manager, decisions made, and information needs as shown in Table 14.1 (pp. 541542). Describe possible alternatives for the placement of this function in the formal organization chart, and discuss the relative advantages for each placement. Consider the variables of centralized versus decentralized organizational structures.