Compare and contrast the three types of responsibility centers. What is the best way to evaluate a manager's performance in each type of center? What is the problem with using only financial measures of performance?
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Compare and contrast the three types of responsibility centers. What is the best way to evaluate a manager's performance in each type of center? What is the problem with using only financial measures of performance?
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- Identify several types of manufacturing companies for which process costing would be an appropriate product-costing system. What characteristics do the products of these companies have that would make process costing a good choice? How is process costing similar and different in a second or later processing department?Sleep Late, a large hotel chain, has been using activity-based costing to determine the cost of a night’s stay at their hotels. One of the activities, “Inspection,” occurs after a customer has checked out of a hotel room. Sleep Late inspects every 10th room and has been using “number of rooms inspected” as the cost driver for inspection costs. A significant component of inspection costs is the cost of the supplies used in each inspection Mary Adams, the chief inspector, is wondering whether inspection labor-hours might be a better cost driver for inspection costs. Mary gathers information for weekly inspection costs, rooms inspected, and inspection labor-hours as follows: Q.Plot the data and regression line for rooms inspected and inspection costs. Plot the data and regression line for inspection labor-hours and inspection costs. Which cost driver of inspection costs would you choose? Explain.Bargain Rental Car wants to better understand the variable and fixed portions of its car washing costs. The company operates its own car wash facility that cleans each rental car before releasing it to another customer. Management believes the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled: Month January February March April May June July August September October November December Rental Returns 2,400 2,500 2,800 3,100 3,700 5,100 5,600 5,600 Fixed cost per month Variable cost per rental return 4,700 4,100 2,200 2,900 Exercise 5A-2 Part 2 (Algo) Car Wash Costs $ 11,300 $ 13,300 $ 12,100 $ 14,700 $ 16,500 $ 23,900 $ 22,500 $ 22,900 $ 23,100 $ 22,000 $ 11,000 $ 15,300 2. Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. Note: Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal…
- A new brand of women clothes is to enter the Lebanese market. Like all other companies, this women's fashion company has a research team that is responsible for conducting a survey to collect and analyze information on the region and population in order to better understand their customers' characteristics, their profile, and their purchasing pattern. What type of research question is probably going to be used by the research team? Casual Exploratory Descriptive Exploratory and CasualThe accounting department of Insecurity Protection Services, a company that provides security services for rich, famous, and insecure people is analyzing the costs of its accounting services. Analysts have selected the following cost drivers: paychecks processed, invoices processed, customer accounts maintained, responses to routine inquires, and special analyses. MONTH COSTS PAYCHECKS INVOICES CUSTOMER ROUTINE SPECIAL ACCOUNTS 325 PROCESSED PROCESSED INQUIRES ANALYSIS $7,013.00 6,469.80 6,129.40 5,905.90 5,659.50 1,340 1,180 1,050 1 12,690 11,980 10,950 10,280 9,020 8,130 7,540 6,980 32 2 310 39 3 280 245 205 185 45 1 4 930 54 840 68 6 780 83 5,115.80 5,101.80 5,488.90 5,284.80 2 7 700 160 97 3 8 630 140 112 4 9 8,930 680 115 101 2 Sort 9,800 10,560 11,560 10 760 93 5,538.40 6,129.30 6,026.10 6,517.20 6,600.50 120 11 890 175 82 1 12 1,070 1,240 1,390 1,450 200 68 13 11,710 12,460 13,520 13,620 169,730 240 55 14 285 45 15 7,153.10 7,207.60 $97,341.10 300 39 1 16 1,510 16,440 315 24…sub: control engineering
- Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract for its new computer wheel alignment and balancing machine. Managers feel that maintenance expense should be related to usage, and they collected the following information on weekly usage (hours) and annual maintenance expense (in hundreds of dollars). Weekly Usage(hours) AnnualMaintenance Expense 19 24 16 29 26 37 34 44 38 54 23 38 30 40 37 46 46 59 44 47 -select your answer choices- b. p-value less than 0.01 between 0.01 and 0.025 between 0.025 and 0.05 between 0.05 and 0.10 greater than 0.10 Conclusion Do not conclude that there is a significant relationship between expense and weekly usage Conclude that there is a significant relationship between expense and weekly usage d. No, the expected maintenance expense is less than $3000 Yes, the expected maintenance expense is greater than $3000A responsibility accounting system measures the performance of each of the following centers except 16 Multiple Cholce Ask Control center. Cost center. Profit center. Investment center.The manager Concerned about her current customer base, manager Andersen started to think of factors that might affect the attractiveness of an auditing firm. Of course, the service quality provided and the fees charged by the auditor seem two important factors. Next, she decides that the reputation of the auditing firm also needs to be included in the framework as an independent variable. As illustrated by the dramatic effects of recent auditing scandals, reputation seems especially important for large auditors (i.e., auditing firms that are large in size). Finally, manager Andersen also thinks that the proximity of the auditing firm to the customer is another variable to be included as an independent variable. Proximity very likely affects the possibility for the client to personally meet with the auditors on a regular basis and she knows from her own contact with customers that they perceive personal interactions as quite important. Consider the above scenario shown; answer the…