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 Macy’s 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. Apple’s Braeburn Capital Inc., where most of Apple’s billions of dollars are invested
G. Zappo’s department store
H. the men’s clothing department in the Walmart #5030 in Toledo, Ohio
Want to see the full answer?
Check out a sample textbook solutionChapter 12 Solutions
Principles of Accounting Volume 2
Additional Business Textbook Solutions
Financial Accounting, Student Value Edition (5th Edition)
Financial Accounting (12th Edition) (What's New in Accounting)
Intermediate Accounting
Managerial Accounting (4th Edition)
Principles of Accounting Volume 1
Financial Accounting (11th Edition)
- Which of the following statements is true? I. A packaging department is most likely a cost center. II. In a profit center, the manager is most likely in-charge of investments, revenues and costs. III. The cafeteria in the college is most likely a profit center. IV. A business unit within a business is an example of a revenue center a. All but II b. I only c. All statements are true d. All but II and III e. I and II only Clear my choicearrow_forwardIn 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 Centerarrow_forwardFor each of the following managers, describe how managerial accounting could be used to satisfy strategic or operational objectives: a. The vice president of the Information Systems Division of a bank. b. A hospital administrator. c. The chief executive officer of a food company. The food company is divided into three divisions: Nonalcoholic Beverages, Snack Foods, and Fast-Food Restaurants. d. The manager of the local campus copy shop.arrow_forward
- Assume you have been hired by Cabelas Sporting Goods. 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 Cabelas 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.arrow_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_forwardFor 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 managersarrow_forward
- 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 centerarrow_forwardThe Cadillac division of General Motors is considered: a) a cost center b) a profit center c) an investment center d) a center that will be evaluated on profit marginarrow_forwardFor each office or business segment, indicate which type of Responsibility Center it is: a. Quality control department for a golf ball manufacturer b. Consulting department of an accounting firm c. A retail location, such as the Apple Store d. The sales department at an car dealership e. Maintenance department of a luxury resort ["", "", "", "", "", ""]arrow_forward
- 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_forwardThe Quaker Foods division of PepsiCo is most likely treated as a(n) a. revenue center. b. cost center. c. investment center. d. profit center.arrow_forwardThe responsibility report of Alejandro Garcia, the manager of one of the divisions of an auto parts manufacturing company, includes profits as well as return on investment and residual income. Alejandro is most likely the manager of a(n) ________. A. revenue center B. cost center C. investment center D. profit centerarrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub