Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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- Question 9.1 With respect to each of the following activities, characteristics, and applications, indicate whether they are primarily identified as being found in a centralized organization, a decentralized organization, or both types of organizations. both centralization decentralization Required: Freedom for managers at lower organizational levels to make decisions. Gathering information may be very expensive. Greater responsiveness to user needs. Have few interdependencies among divisions. Maximum constraints and minimum freedom for managers at lowest levels. Maximization of benefits over costs. Minimization of duplicate functions. Minimum of sub optimal decision making. Multiple responsibility centers with various reporting units. Profit centers.arrow_forwardChapter 24 (Continued): Decentralized Operations Requirement 1: Please explain why a firm would use a balanced scorecard in evaluating divisional performance. Requirement 2: Please identify and define the four areas of the Balanced Scorecard. Select two areas and suggest how they might be used by Berkeley College. Rocnoncoc to Inctructor:arrow_forward4. Select an organization with which you are familiar-preferably one that you have worked in. To what extent is this organization "boundary less," that is, are the boundaries across departments and hierarchical levels rather permeable or are they fixed and rigid? How is this aspect of organizational design affecting its performance? How could it be improved? *arrow_forward
- 8 The purpose of the balanced scorecard is BEST described as helping an organization Select one: a. develop customer relations. b. translate an organization's mission and strategy into a set of performance measures that help to implement the strategy. c. introduce innovative products and services desired by target customers. d. mobilize employee skills for continuous improvements in processing capabilities, quality, and response times.arrow_forwardIn a centralized organization, where are goals established? A. at the lower level of the organization and promoted upward B. outside the organization based on best practices in the industry C. by each segment of the organization D. at the highest level of the organization and promoted downwardarrow_forwardA key advantage of a decentralized organization is _________. A. increased administrative costs B. quicker decisions and response time C. the ease of aligning segment and company goals D. duplication of effortsarrow_forward
- Examine the placement of the manager of HR systems in the organization chart of Figure 14.2 (pg. 541) and review the typical functional responsibilities of this manager, decisions made, and information needs as shown in Table 14.1 (pp. 541542). Describe possible alternatives for the placement of this function in the formal organization chart, and discuss the relative advantages for each placement. Consider the variables of centralized versus decentralized organizational structures.arrow_forwardQuestion 1 (1 point) Saved For performance reports to achieve their control objectives, they must: Question 1 options: a. Include relevant information so that necessary action may be taken to accomplish organizational goals b. Be timely so that minimal time elapses between an activity's occurrence and the feedback reflecting the activity's efficient or inefficient performance c. Provide subsystem managers with suggestions as to how they can operate their subsystems more efficiently d. all of the above e. a and b only Question 2 (1 point) Saved Which of the following includes a thorough study of an existing system, including its strengths and weaknesses? Question 2 options: Detailed system design System analysis Functional analysis report Feasibility…arrow_forwardExplain what type of responsibility centre a support department is and the main differences between the direct, step-down and reciprocal services method. Describe two characteristics of innovations management accountants consider important when deciding whether to implement new systems. (Five sentences that covers the main points are sufficient).arrow_forward
- MULTIPLE CHOICE Which of the following is the main assumption that is made about managers in general in support of decentralization? Managers at the local/divisional level will act in the best interest of the organization Top managers at corporate headquarters will act in the best interest of the organization Top managers at corporate headquarters have access to better information for operational decisions Managers at the local/divisional level have access to better information for operational decisions Kirkland Company has several service departments that provide services to each other as well as to operating departments within the company. Which method would be least accurate in allocating the company's service department costs? The sequential method The direct method The step-down method The reciprocal method Which of the following is an example of a committed fixed cost? A training program for salespersons Executive travel expenses Property taxes on the factory…arrow_forwardWhich of the following is an advantage of decentralization? Group of answer choices Departmental managers who have expertise in specific product or service lines can make better decisions. Decisions made by one manager may have a negative impact on the performance of a manager of another department. Duplication of services since different departments use their own admin and support services. Departmental goals and the goals of the company may not be congruent or aligned.arrow_forwardTo minimize common measures bias when developing divisional balanced scorecards for unique divisions within a corporation, Od. it is important to stop gathering information whcn the results for the division look good a.onc division may focus morc heavily.on.a subset.of.tho four perspectives, for.examplo.on learning-and growth and intermalprocesses. while other divisions fOcus on different perspectives, suchn.as.customocrand financia OC. the performance mctrics should bc treated as stratcgic objcctives in and or themsclves within each division b.cach division must focus cqually on all four perspectves of the balanced scorccardarrow_forward
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