Evergreen Transportation is a domestic logistics company offering warehousing and transportation services. It is organized along product lines with three sectors: Agricultural, Manufactured Goods, and Petro-Chemicals. Each of the three sectors is further organized into geographic divisions: Eastern, Midwestern, Southern, and Western. Division vice presidents oversee both the marketing and operations for their units. Evergreen is highly decentralized with division presidents given authority to operate the business independently in terms of operations, investments, and marketing. Required: Match the following executives to the responsibility center that best represents their likely decision-making authority. > Answer is complete but not entirely correct. Executive Responsibility Center 1. Warehouse Manager, Manufactured Goods 2. Sector President, Agriculture Cost center Profit center × 3. Manager, Evergreen Corporate Human Resources (HR) Cost center × 4. Sales Manager, Petro-Chemicals 5. Vice President, Agriculture-Southern Division Discretionary cost center × Investment center ×

Evergreen Transportation is a domestic logistics company offering warehousing and transportation services. It is organized along product lines with three sectors: Agricultural, Manufactured Goods, and Petro-Chemicals. Each of the three sectors is further organized into geographic divisions: Eastern, Midwestern, Southern, and Western. Division vice presidents oversee both the marketing and operations for their units. Evergreen is highly decentralized with division presidents given authority to operate the business independently in terms of operations, investments, and marketing. Required: Match the following executives to the responsibility center that best represents their likely decision-making authority. > Answer is complete but not entirely correct. Executive Responsibility Center 1. Warehouse Manager, Manufactured Goods 2. Sector President, Agriculture Cost center Profit center × 3. Manager, Evergreen Corporate Human Resources (HR) Cost center × 4. Sales Manager, Petro-Chemicals 5. Vice President, Agriculture-Southern Division Discretionary cost center × Investment center ×

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 1EB: For the following situations identify whether the description is a centralized or decentralized...

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Cable Network System Bhd (CNS) is a supplier of equipment to telecommunication companies such as Maxis, Celcom and Astro. It has two division, Component Division and the Equipment Division. CNS adopts a decentralized management system where managers are essentially free to determine whether goods will be transferred internally and what would be the internal transfer prices. CNS policy is that for all internal transfers between divisions, the transfer price be expressed on a full cost basis. The markup in the full cost arrangement is left to the discretion of divisional managers. The managers of the two division held a meeting to discuss on the pricing arrangement for a mini- antennae produced by the component division. Production of the mini-antennae is currently at full capacity. The Component Division can sell the mini-antennae for RM 46.50 to outside customers. The Equipment Division can also buy the mini-antennae from external sources for the same price. The manager of the…
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