Most firms allocate corporate and other support costs to divisions and departments for all of the following reasons except to: a. remind profit center managers that earnings must be adequate to cover some share of the indirect costs. b. stimulate profit center managers to put pressure on central managers to control service costs. c. create competition between divisions and departments and their managers. d. fix accountability and evaluate profit centers.

BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663

Solutions

Chapter
Section
Chapter 24, Problem 2CMA
Textbook Problem

Most firms allocate corporate and other support costs to divisions and departments for all of the following reasons except to:

a.    remind profit center managers that earnings must be adequate to cover some share of the indirect costs.

b.    stimulate profit center managers to put pressure on central managers to control service costs.

c.    create competition between divisions and departments and their managers.

d.    fix accountability and evaluate profit centers.

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Chapter 24 Solutions

Financial And Managerial Accounting
Ch. 24 - Budgetary performance for cost center Vinton...Ch. 24 - Support department allocations The centralized...Ch. 24 - Income from Operations for profit center Using the...Ch. 24 - Profit margin, investment turnover, and ROI Briggs...Ch. 24 - Residual income Obj. The Commercial Division of...Ch. 24 - Transfer pricing The materials used by the...Ch. 24 - Budget performance reports for cost centers...Ch. 24 - The following data were summarized from the...Ch. 24 - For each of the following support departments,...Ch. 24 - For each of the following support departments,...Ch. 24 - Service department charges In divisional income...Ch. 24 - Varney Corporation, a manufacturer of electronics...Ch. 24 - Horton Technology has two divisions, Consumer and...Ch. 24 - Rocky Mountain Airlines Inc. has two divisions...Ch. 24 - Championship Sports Inc. operates two divisionsthe...Ch. 24 - The operating income and the amount of invested...Ch. 24 - The operating income and the amount of invested...Ch. 24 - Determining missing items in return on investment...Ch. 24 - The condensed income statement for the Consumer...Ch. 24 - The Walt Disney Company (DIS) has four business...Ch. 24 - Data are presented in the following table of...Ch. 24 - Determining missing items from computations Data...Ch. 24 - Materials used by the Instrument Division of...Ch. 24 - Based on Ziegler Inc.s data in Exercise 17, assume...Ch. 24 - GHT Tech Inc. sells electronics over the Internet....Ch. 24 - Profit center responsibility reporting for a...Ch. 24 - Divisional income statements and return on...Ch. 24 - Effect of proposals on divisional performance A...Ch. 24 - Divisional performance analysis and evaluation The...Ch. 24 - Transfer pricing Garcon Inc. manufactures...Ch. 24 - Budget performance report for a cost center The...Ch. 24 - Profit center responsibility reporting for a...Ch. 24 - Divisional income statements and return on...Ch. 24 - Effect of proposals on divisional performance A...Ch. 24 - Divisional performance analysis and evaluation The...Ch. 24 - Transfer pricing Exoplex Industries Inc. is a...Ch. 24 - Kelly Kitchens operates both franchised and...Ch. 24 - Panera Bread Company (PNRA) operates over 2,000...Ch. 24 - Papa Johns International, Inc. (PZZA), operates...Ch. 24 - Panera Bread Company (PNRA) operates over 2,000...Ch. 24 - McDonalds Corporation (MCD) operates company-owned...Ch. 24 - Ethics in Action Sembotix Company has several...Ch. 24 - The Customer Service Department of Door Industries...Ch. 24 - Communication The Norse Division of Gridiron...Ch. 24 - The three divisions of Yummy Foods are Snack...Ch. 24 - Last Resort Industries Inc. is a privately held...Ch. 24 - Sara Bellows, manager of the telecommunication...Ch. 24 - Most firms allocate corporate and other support...Ch. 24 - Manhattan Corporation has several divisions that...Ch. 24 - Morrisons Plastics Division, a profit center,...

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