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Managerial Accounting

15th Edition
Carl Warren + 1 other
Publisher: South-Western College Pub
ISBN: 9781337912020

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BuyFindarrow_forward

Managerial Accounting

15th Edition
Carl Warren + 1 other
Publisher: South-Western College Pub
ISBN: 9781337912020
Chapter 10, Problem 1DQ
Textbook Problem
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Differentiate between centralized and decentralized operations.

To determine

Distinguish Centralized operations from decentralized operations

Explanation of Solution

Centralized operations: In a company where the major plans and operating decisions are controlled by the top level management, such a company is said to have centralized operations.

Decentralized operations: In a company where the plans and operating decisions are delegated to the divisional managers, such a company is said to have decentralized operations.

Differences between centralized and decentralized operations:

Centralized OperationsDecentralized Operations
The major operating decisions are controlled by top level management.The major operating decisions are delegated to divisional managers.
Centralized operations are preferable by small businesses, where one man can handle all the operations.Decentralized operations are delegated to the managers with expertise in the respective production lines and services.
Since the business is small and can be controlled by one person, it is easy to maintain the operations, and not much experience is necessary.Since the product lines and numerous, top level management cannot alone control all the operations, and may not have expertise in all departments.

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Chapter 10 Solutions

Managerial Accounting
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Ch. 10 - Budgetary performance for cost center Vinton...Ch. 10 - Support department allocations The centralized...Ch. 10 - Income from Operations for profit center Using the...Ch. 10 - Profit margin, investment turnover, and ROI Briggs...Ch. 10 - Residual income The Commercial Division of Galena...Ch. 10 - Transfer pricing The materials used by the...Ch. 10 - Budget performance reports for cost centers...Ch. 10 - The following data were summarized from the...Ch. 10 - For each of the following support departments,...Ch. 10 - For each of the following support departments,...Ch. 10 - Service department charges In divisional income...Ch. 10 - Varney Corporation, a manufacturer of electronics...Ch. 10 - Horton Technology has two divisions, Consumer and...Ch. 10 - Rocky Mountain Airlines Inc. has two divisions...Ch. 10 - Championship Sports Inc. operates two divisionsthe...Ch. 10 - The operating income and the amount of invested...Ch. 10 - The operating income and the amount of invested...Ch. 10 - Determining missing items in return on investment...Ch. 10 - The condensed income statement for the Consumer...Ch. 10 - The Walt Disney Company (DIS) has four business...Ch. 10 - Data are presented in the following table of...Ch. 10 - Determining missing items from computations Data...Ch. 10 - Materials used by the Instrument Division of...Ch. 10 - Based on Ziegler Inc.s data in Exercise 17, assume...Ch. 10 - GHT Tech Inc. sells electronics over the Internet....Ch. 10 - Profit center responsibility reporting for a...Ch. 10 - Divisional income statements and return on...Ch. 10 - Effect of proposals on divisional performance A...Ch. 10 - Divisional performance analysis and evaluation The...Ch. 10 - Transfer pricing Garcon Inc. manufactures...Ch. 10 - Budget performance report for a cost center The...Ch. 10 - Profit center responsibility reporting for a...Ch. 10 - Divisional income statements and return on...Ch. 10 - Effect of proposals on divisional performance A...Ch. 10 - Divisional performance analysis and evaluation The...Ch. 10 - Transfer pricing Exoplex Industries Inc. is a...Ch. 10 - Kelly Kitchens operates both franchised and...Ch. 10 - Panera Bread Company (PNRA) operates over 2,000...Ch. 10 - Papa Johns International, Inc. (PZZA), operates...Ch. 10 - Panera Bread Company (PNRA) operates over 2,000...Ch. 10 - McDonalds Corporation (MCD) operates company-owned...Ch. 10 - Ethics in Action Sembotix Company has several...Ch. 10 - The Customer Service Department of Door Industries...Ch. 10 - Communication The Norse Division of Gridiron...Ch. 10 - The three divisions of Yummy Foods are Snack...Ch. 10 - Last Resort Industries Inc. is a privately held...Ch. 10 - Sara Bellows, manager of the telecommunication...Ch. 10 - Most firms allocate corporate and other support...Ch. 10 - Manhattan Corporation has several divisions that...Ch. 10 - Morrisons Plastics Division, a profit center,...

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