SURVEY OF ACCOUNTING 360DAY CONNECT CAR
5th Edition
ISBN: 9781260591811
Author: Edmonds
Publisher: MCG
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Chapter 15, Problem 18P
a.
To determine
Explain the differences between the responsibility centers.
b.
To determine
Explain whether the manager of the computer department deal the operations in a different way, if the department is classified as a profit center or an investment center.
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Question Two
Mwaiseni Plc a chain stores organization has several branches in all the ten provincial headquarters in Zambia. Each branch has a manager who reports directly to the General Manager whose office is in Lusaka.
Since 1991, each branch manager prepares a budget as part of the company’s annual budgeting process. You have just been appointed as General Manager and you are concerned about the validity of these annual budgets. You feel that the branch managers will overstate their costs and resource requirements in order to make it easier for them to achieve their budget targets.
Required:
-Explain the differences between the above annual budgeting system and a rolling budget system.
- Describe the problems that could arise, for planning and decision making purposes within Mwaiseni, if the branch managers did overstate their budgeted costs and resource requirements.
- Discuss the behavioural issues that could arise if excess costs and resources are removed from the branch…
Question 6.2
The Lawn Patrol Corporation has two divisions, the Lawnmower Division and the Landscaping Division, which both operate under one plant. The following data apply to the coming budget year:
Budgeted costs of the operating the plant for 4,000 to 8,000 hours:
Fixed operating costs per year $280,000
Variable operating costs $15 per hour
Practical capacity 7,000 hours per year
Budgeted long-run usage per year:
Lawnmower Division 325 hours × 12 months = 3,900 hours per year
Landscaping Division…
Question 3
Mischa Furniture Stores (“MFS”) is a company that specialises in office furniture based in Windhoek. Due to the effects of Covid-19, it has become very imperative for the company to manage its cash flows effectively. The owner of MFS knows of your skills in management accounting and has requested your service in the preparation of the forth coming quarter’s cash budget. Upon interviews with different departments at MFS, you have ascertained the following information:
Budget information for January, February and March 2023 is as follows:
January
February
March
N$
N$
N$
Sales
590 000
650 000
750 000
Production costs
300 000
350 000
420 000
Sales and Administration costs
150 000
170 000
200 000
Purchase of non-current assets…
Chapter 15 Solutions
SURVEY OF ACCOUNTING 360DAY CONNECT CAR
Ch. 15 - 1. Pam Kelly says she has no faith in budgets. Her...Ch. 15 - 7. What is a responsibility center?Ch. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - Prob. 5QCh. 15 - 3. When are sales and cost variances favorable and...Ch. 15 - 4. Joan Mason, the marketing manager for a large...Ch. 15 - Prob. 8QCh. 15 - Prob. 9QCh. 15 - Prob. 10Q
Ch. 15 - Prob. 11QCh. 15 - 9. Minnie Divers, the manager of the marketing...Ch. 15 - 6. How do responsibility reports promote the...Ch. 15 - Prob. 14QCh. 15 - Prob. 15QCh. 15 - Prob. 16QCh. 15 - 12. How can a residual income approach to...Ch. 15 - Prob. 18QCh. 15 - Exercise 9-6A Evaluating a profit center Helen...Ch. 15 - Prob. 2ECh. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Exercise 8-3A Determining amount and type...Ch. 15 - Prob. 6ECh. 15 - Exercise 8-4A Determining sales and variable cost...Ch. 15 - Exercise 8-5A Determining flexible budget...Ch. 15 - Exercise 8-9A Responsibility for the fixed cost...Ch. 15 - Prob. 10ECh. 15 - Exercise 8-7A Evaluating a decision to increase...Ch. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Exercise 9-9A Residual income Climax Corporation...Ch. 15 - Residual income Gletchen Cough Drops operates two...Ch. 15 - Prob. 16ECh. 15 - Prob. 17ECh. 15 - Prob. 18PCh. 15 - Prob. 19PCh. 15 - Prob. 20PCh. 15 - Prob. 21PCh. 15 - Problem 9-20A Return on investment Sorrento...Ch. 15 - Problem 9-21A Comparing return on investment and...Ch. 15 - Comparing return on investment and residual income...Ch. 15 - ATC 8-1 Business Applications Case Static versus...Ch. 15 - Prob. 2ATCCh. 15 - Prob. 3ATCCh. 15 - ATC 9-1 Business Applications Case Analyzing...Ch. 15 - Prob. 5ATC
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Static budget for a service company A bank manager of City Savings Bank Inc. uses the managerial accounting system to track the costs of operating the various departments within the bank. The departments include Cash Management, Trust, Commercial Loans, Mortgage Loans, Operations, Credit Card, and Branch Services. The static budget and actual results for the Operations Department are as follows: Resources Budget Actual Salaries 200,000 200,000 Benefits 30.000 30,000 Supplies 45,000 42,000 Travel 20,000 30,000 Training 25,000 35,000 Overtime 25,000 20,000 Total 345,000 357,000 Excess of actual over budget 12,000 a. What information is provided by the budget? Specifically, what questions can the bank manager ask of the Operations Department manager? b. What information does the static budget fail to provide? Specifically, could the budget information be presented differently to provide even more insight for the bank manager?arrow_forwardStatic budget for a service company A bank manager of City Savings bank Inc. uses the managerial accounting system to track the costs of operating the various departments within the bank. The departments include Cash Management, Trust, Commercial Loans, Mortgage Loans, Operations, Credit Card, and Branch Services. The static budget and actual results for the Operations Department are as follows: Resources Budget Actual Salaries 200,000 200,000 Benefits 30,000 30,000 Supplies 45,000 42,000 Travel 20,000 30,000 Training 25,000 35,000 Overtime 25,000 20,000 Total 345.000 357,000 Excess of actual over budget 12,000 a. What information is provided by the budget? Specifically, what questions can the bank manager ask of the Operations Department manager? b. What information does the static budget fail to provide? Specifically, could the budget information be presented differently to provide even more insight for the bank manager?arrow_forwardEthics and professional conduct in business The director of marketing for Truss Industries Inc.. Ellen Knutson, had the following discussion with the company controller. Bud Wyckoff. on February 26 of the current year: Ellen: Bud, it looks like I'm going to spend much less than indicated on my February budget. Butt: I'm glad to hear it. Ellen: Well. I'm not so sure it's good news. I'm concerned that the president will see that I'm under budget and reduce my budget in the future. The only reason that I look good is that we've delayed an advertising campaign. Once the campaign hits in May. I'm sure my actual expenditures will go up. You see. we are also having our sales convention in May. Having the advertising campaign and the convention at the same time is going to kill my May numbers.arrow_forward
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Responsibility Accounting| Responsibility Centers and Segments| US CMA Part 1| US CMA course; Master Budget and Responsibility Accounting-Intro to Managerial Accounting- Su. 2013-Prof. Gershberg; Author: Mera Skill; Rutgers Accounting Web;https://www.youtube.com/watch?v=SYQ4u1BP24g;License: Standard YouTube License, CC-BY