Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 6P
To determine
Show the functional segments of a firm which is manufacturing diversified products.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Customer-cost hierarchy, customer profitability. Louise Newman operates Interiors by Louise, an interior design consulting and window treatment fabrication business. Her business is made up of two different distribution channels, a consulting business in which Louise serves two architecture firms (Adams and Betz) and a commercial window treatment business in which Louise designs and constructs window treatments for three commercial clients (Chatham, Dedham, and Elm). Louise would like to evaluate the profitability of her two architecture firm clients and three commercial window treatment clients, as well as evaluate the profitability of each of the two channels and the business as a whole. Information about her most recent quarter follow:
Customer-cost hierarchy, customer protability. Louise Newman operates Interiors by Louise, an interior design consulting and window treatment fabrication business. Her business is made up of two different distribution channels, a consulting business in which Louise serves two architecture rms (Adams and Betz) and a commercial window treatment business in which Louise designs and constructs window treatments for three commercial clients (Chatham, Dedham, and Elm). Louise would like to evaluate the protability of her two architecture rm clients and three commercial window treatment clients, as well as evaluate the protability of each of the two channels and the business as a whole. Information about her most recent quarter follow:
Code Incorporated has three divisions (Entertainment, Plastics, and Video Card), each of which is considered an investment center for performance evaluation purposes. The Entertainment Division manufactures video arcade equipment using products produced by the other two divisions, as follows:
1. The Entertainment Division purchases plastic components from the Plastics Division that are considered unique (i.e., they are made exclusively for the Entertainment Division). In addition, the Plastics Division makes less-complex plastic components that it sells externally, to other producers.
2. The Entertainment Division purchases, for each unit it produces, a video card from Code's Video Card Division, which also sells this video card externally (to other producers). The per-unit manufacturing costs associated with each of the above two items, as incurred by the Plastic Components Division and the Video Card Division, respectively, are:
Plastic Components
Video Cards
Direct…
Chapter 1 Solutions
Accounting Information Systems
Ch. 1 - Prob. 1RQCh. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - What is discretionary reporting?Ch. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Prob. 10RQ
Ch. 1 - Prob. 11RQCh. 1 - Prob. 12RQCh. 1 - Prob. 13RQCh. 1 - Prob. 14RQCh. 1 - Prob. 15RQCh. 1 - What is the role of the accounting function in an...Ch. 1 - Prob. 17RQCh. 1 - Prob. 18RQCh. 1 - Prob. 19RQCh. 1 - What two roles are played by accountants with...Ch. 1 - Define the term attest function.Ch. 1 - Define the term financial services.Ch. 1 - Prob. 23RQCh. 1 - Distinguish between conceptual and physical...Ch. 1 - Prob. 25RQCh. 1 - Prob. 26RQCh. 1 - Prob. 27RQCh. 1 - Prob. 28RQCh. 1 - Prob. 29RQCh. 1 - Prob. 30RQCh. 1 - Prob. 31RQCh. 1 - Prob. 32RQCh. 1 - Why are custom systems more expensive than...Ch. 1 - Prob. 34RQCh. 1 - Briefly explain accounting independence.Ch. 1 - Prob. 36RQCh. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Distinguish between financial and nonfinancial...Ch. 1 - Prob. 4DQCh. 1 - Do you think transaction processing Systems differ...Ch. 1 - Discuss the difference between the financial...Ch. 1 - Prob. 7DQCh. 1 - Discuss how the dements of efficiency,...Ch. 1 - Discuss what is meant by the statement, The...Ch. 1 - Discuss the importance of accounting independence...Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Discuss how conceptual and physical systems differ...Ch. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - Prob. 1MCQCh. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Prob. 4MCQCh. 1 - Prob. 5MCQCh. 1 - Prob. 6MCQCh. 1 - Prob. 7MCQCh. 1 - Prob. 8MCQCh. 1 - Which of the following is NOT an objective of all...Ch. 1 - Prob. 10MCQCh. 1 - Which of the following best describes the...Ch. 1 - Prob. 12MCQCh. 1 - Prob. 13MCQCh. 1 - Which of the following statements is most...Ch. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - ACCOUNTING INFORMATION SYSTEM ACQUISITION What is...Ch. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - FUNCTIONAL SEGMENTATION The current organizational...Ch. 1 - COMMUNICATIONS Before the mid-1970s, systems...Ch. 1 - CHARACTERISTICS OF USEFUL INFORMATION All records...Ch. 1 - Prob. 10PCh. 1 - Prob. 11PCh. 1 - Prob. 12P
Knowledge Booster
Similar questions
- Which of the following would most appropriately be evaluated as a “profit center”? Group of answer choices a)Maintenance operations for American Airlines b)A warehouse operation for Amazon c)A hotel restaurant that caters to both hotel guests and non-guests d)Sales division for a large publisherarrow_forwardRequirement 2. For each decision, select what information the management accountant can provide about the source of competitive advantage for these firms. a. For a running shoe manufacturer's decision of whether to purchase leather from a cheaper supplier, management accountants can provide the following information: (Complete all input fields.) b. For an office supply store's decision of whether to a delivery service that its competitors do not have, management accountants can provide the following information: (Complete all input fields.) c. For a regional retailer's decision of whether to install self-check-out counters, management accountants can provide the following information: (Complete all input fields.) d. For a local florist's decision of whether to hire a horticulture specialist to help customers with gardening questions, management accountants can…arrow_forwardCranshaw Business Services (CBS) operates an information technology (IT) consulting firm out of two offices: Detroit and Los Angeles. Corporate services, such as legal, finance, and personnel, are centralized at the main office and the costs of these services are allocated to the two offices for the purposes of profitability assessment. The Detroit office is the original unit of the company and is well established, having long-time clients from the automotive and other manufacturing industries. The Los Angeles office is new with a smaller, much more varied, clientele. The costs of personnel services at CBS are currently allocated on the basis of the number of employees in each office. The annual costs of the personnel department total $350,000. Data for the fiscal year just ended show the following: Detroit Los Angeles Number of employees 380 120 Number of new hires 7 20 Number of employees departing 3 10 Exercise 9-31 (Static) Unitwide versus Department…arrow_forward
- Identify the type of responsibility center (revenue center, cost center, profit center, or investment center) for each of the following situations. the legal department for Avon Manufacturing. Cost center the Macy’s store in Mansfield, Ohio Investment center the food and beverage division of the Best Western the marketing department of the Hershey Company the Walmart #5030 on Central Avenue in Toledo, Ohio Apple’s Braeburn Capital Inc., where most of Apple’s billions of dollars are invested Zappo’s department store the men’s clothing department in the Walmart #5030 in Toledo, Ohioarrow_forwardDetermining transfer pricing The Harris Company is decentralized, and divisions are considered investment centers. Harris has one division that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division cuts, assembles, and finishes the oak chairs and then purchases and attaches the seat cushions. The Chair Division currently purchases the cushions for $22 from an outside vendor. The Cushion Division manufactures upholstered seat cushions that are sold to customers outside the company. The Chair Division currently sells 800 chairs per quarter, and the Cushion Division is operating at capacity, which is 800 cushions per quarter. The two divisions report the following information: Requirements Determine the total contribution margin for Harris Company for the quarter. Assume the Chair Division purchases the 800 cushions needed from the Cushion Division at its current sales price. What is the total contribution margin for each division and the company? Assume…arrow_forwardDetermining transfer pricing The Hernandez Company is decentralized, and divisions are considered investment centers. Hernandez has one division that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division cuts, assembles, and finishes the oak chairs and then purchases and attaches the seat cushions. The Chair Division currently purchases the cushions for $32 from an outside vendor. The Cushion Division manufactures upholstered seat cushions that are sold to customers outside the company. The Chair Division currently sells 1,800 chairs per quarter, and the Cushion Division is operating at capacity, which is 1,800 cushions per quarter. The two divisions report the following information: Requirements Determine the total contribution margin for Hernandez Company for the quarter. Assume the Chair Division purchases the 1,800 cushions needed from the Cushion Division at its current sales price. What is the total contribution margin for each division and the…arrow_forward
- 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_forwardFor 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 Armyarrow_forwardBenetton supply chain: One of the best known examples of how an organization can use its supply chain to achieve a competitive advantage is the Benetton Group. Founded by the Benetton family in the 1960s, the company is now one of the largest garment retailers, with stores which bear its name located in almost all parts of the world. Part of the reason for its success has been the way it has organized both the supply side and the demand side of its supply chain. Although Benetton does manufacture much of its production itself, on its supply side the company relies heavily on ‘contractors’. Contractors are companies (many of which are owned, or part-owned, by Benetton employees) that provide services to the Benetton factories by knitting and assembling Benetton’s garments. These contractors, in turn, use the services of sub-contractors to perform some of the manufacturing tasks. Benetton’s manufacturing operations gain two advantages from this. First, its production costs for woollen…arrow_forward
- D Corporation is one of the major producers of prefabricated houses in the home buildingindustry. The corporation consists of two divisions:1. Bell Division, which acquires the raw materials to manufacture the basic house components and assembles them into kits.2. Cornish Division, which takes the kits and constructs the homes for final home buyers.The corporation is decentralized and the management of each division is measured by its income and return on investment. Bell Division assembles seven separate house kits using raw materials purchased at theprevailing market prices. The seven kits are sold to Cornish for prices ranging from US$45,000 to US$98,000. The prices are set by the corporate management of D Corporation using prices paid by Cornish when it buys comparable units from outside sources. The smaller kits with the lower prices have become a larger portion of the units sold because the final house buyer is faced with prices that are increasing more rapidly than personal…arrow_forwardWorld View Outfitters operates a large outdoor clothing and equipment store with three main product lines: clothing, equipment, and shoes. World View Outfitters operates at capacity and allocates selling, general, and administration (S, G & A) costs to each product line using the cost of merchandise of each product line. The company wants to optimize the pricing and cost management of each product line and is wondering if its accounting system is providing it with the best information for making such decisions. Store manager Abe Barry gathers the following information regarding the three product lines: For2017,World View Outfitters budgets the following selling, general, and administration costs: 1. Suppose World View Outfitters uses cost of merchandise to allocate all S, G & A costs. Prepare budgeted product-line and total company income statements. 2. Identify an improved method for allocating costs to the three product lines. Explain. Use the…arrow_forwardDee Corporation is one of the major producers of pre-fabricated houses in the home building industry. Thecorporation consists of two divisions:1. Bell Division, which acquires the raw materials to manufacture the basic house components andassembles them into kits.2. Cornish Division, which takes the kits and constructs the homes for final home buyers.The corporation is decentralized and the management of each division is measured by its income and return oninvestment.Bell Division assembles seven separate house kits using raw materials purchased at the prevailing market prices.The seven kits are sold to Cornish for prices ranging from US$45,000 to US$98,000. The prices are set bycorporate management of Dee Corporation using prices paid by Cornish when it buys comparable units fromoutside sources. The smaller kits with the lower prices have become a larger portion of the units sold becausethe final house buyer is face with prices that are increasing more rapidly than personal income.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeFinancial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub