Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 10, Problem 10.1SE
Identify and understand responsibility centers (Learning Objective 1)
Fill in the blanks with the word or phrase that best completes each sentence. Not all words and phrases are used, and some may be used more than once.
cost center | investment center | lower |
revenue center | responsibility center | higher |
profit center | the same |
10.1-13 Full Alternative Text
- a. The Foodservice Sales Territory Manager in charge of General Mills’ Greater Baltimore/Washington, D. C., sales territory oversees a(n) __________.
- b. The payroll department of Target Corporation, a retailer, is a(n)__________. __________is any segment of the business whose
manager is accountable for specific activities. - c. The Bakery Department of Whole Foods Market, Inc., would be considered to be a(n) __________.
- d. The Procter & Gamble Company headquarters, located in Cincinnati, Ohio, would be a(n) __________.
- e. The Floral Department at the Middletown, Maryland, Safeway grocery store would be considered to be a(n) __________.
- f. Toyota Motor North America, a division of Toyota Motor Corporation, is a(n) __________.
- g. The production line at the Honda plant in Lincoln, Alabama, where Honda Pilot sport utility vehicles are manufactured, is considered to be a(n) __________.
- h. The Boise, Idaho, location of the Olive Garden chain restaurant would be a(n) __________.
- i. Managers of cost and revenue centers are at __________ levels of the organization than are managers of investment centers.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Following are activities for a provider of online education. Classify each activity as unit level, batch level, service level, or
facility level.
Activity
1. Scheduling instructors
2. Controlling course data
3. Receiving supply shipments
4. Registering a student
5. Creating a new course
6. Maintaining course websites
7. Providing electricity
8. Delivering an online course
Level
Categorize each of the following activities as to which management responsibility it fulfills: planning, directing, or controlling. Some activities may fulfill more than one
responsibility. (Select an "X" in the input field if the management responsibility is fulfilled. If the management responsibility is not fulfilled, leave the input field empty.)
Question content area bottom Part 1 Activity Management Responsibility Planning Directing Controlling a. Management decides to increase sales growth by 20% next year.
b. Management analyzes the impact of a recent advertising campaign by comparing budgeted sales to actual sales. c. Management reviews hourly sales reports to
determine the level of staffing needed to staff the customer service desk. d. Management uses information on product costs to determine sales prices. e. To lower
production costs, management moves production to China.
Directions:
1. Read and analyze the given scenario.
2. With the goal and role of financial management in business in mind, determine whether the project
should be continued or abandoned. Use the following facts and figures below as your reference.
3. Present your recommendation and explain the reasons in 4-6 sentences.
4. Write your answer on the blanks provided.
Company A accepts a project to create a Learning Management System (LMS) for a big client. This
company also creates and produces online training materials such as digital videos and ebooks. The LMS
project itself has a projected revenue of $850,000. So far, the expenses amounting to $600,000 have
been incurred by Company A on the project. This is way beyond the allocated budget. Due to this, the
management contemplates on whether the project should still be continued.
1. Customized Software/Program Already purchased for $80,000 (apart from the $600,000 mentioned
above), this software cannot be used for any other products of…
Chapter 10 Solutions
Managerial Accounting (5th Edition)
Ch. 10 - (Learning Objective 1) Companies often...Ch. 10 - (Learning Objective 1) Which of the following is...Ch. 10 - (Learning Objective 1) In terms of responsibility...Ch. 10 - (Learning Objective 2) Which of the following is...Ch. 10 - (Learning Objective 2) A segment margin is the...Ch. 10 - Prob. 6QCCh. 10 - Prob. 7QCCh. 10 - Prob. 8QCCh. 10 - Prob. 9QCCh. 10 - Prob. 10QC
Ch. 10 - Identify and understand responsibility centers...Ch. 10 - Identify types of responsibility centers (Learning...Ch. 10 - Identify centralized and decentralized...Ch. 10 - Prob. 10.4SECh. 10 - Prob. 10.5SECh. 10 - Prob. 10.6SECh. 10 - Calculate ROI (Learning Objective 3) Refer to Epic...Ch. 10 - Prob. 10.8SECh. 10 - Prob. 10.9SECh. 10 - Prob. 10.10SECh. 10 - Prob. 10.11SECh. 10 - Interpret a performance report (Learning Objective...Ch. 10 - Prob. 10.13SECh. 10 - Classify KPIs by balanced scorecard perspective...Ch. 10 - Use vocabulary terms (Learning Objectives 1, 2, 3,...Ch. 10 - Prob. 10.16SECh. 10 - Identify type of responsibility center (Learning...Ch. 10 - Complete and analyze a performance report...Ch. 10 - Prepare a segment margin performance report...Ch. 10 - Compute and interpret the expanded ROI equation...Ch. 10 - Prob. 10.21AECh. 10 - Prob. 10.22AECh. 10 - Comparison of ROI and residual income (Learning...Ch. 10 - Prob. 10.24AECh. 10 - Comprehensive flexible budget problem (Learning...Ch. 10 - Prepare a flexible budget performance report...Ch. 10 - Work backward to find missing values (Learning...Ch. 10 - Construct a balanced scorecard (Learning Objective...Ch. 10 - Sustainability and the balanced scorecard...Ch. 10 - Identify type of responsibility center (Learning...Ch. 10 - Complete and analyze a performance report...Ch. 10 - Prob. 10.32BECh. 10 - Prob. 10.33BECh. 10 - Prob. 10.34BECh. 10 - Prob. 10.35BECh. 10 - Prob. 10.36BECh. 10 - Prob. 10.37BECh. 10 - Prob. 10.38BECh. 10 - Prob. 10.39BECh. 10 - Prob. 10.40BECh. 10 - Prob. 10.41BECh. 10 - Sustainability and the balanced scorecard...Ch. 10 - Prepare a budget with different volumes for...Ch. 10 - Prepare and interpret a performance report...Ch. 10 - Prob. 10.45APCh. 10 - Prob. 10.46APCh. 10 - Prob. 10.47APCh. 10 - Evaluate subunit performance (Learning Objectives...Ch. 10 - Prob. 10.49BPCh. 10 - Prob. 10.50BPCh. 10 - Evaluate divisional performance (Learning...Ch. 10 - Prob. 10.52BPCh. 10 - Determine transfer price at a manufacturer under...Ch. 10 - Evaluate subunit performance (Learning Objectives...Ch. 10 - Prob. 10.55SC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Match each concept with its best description by entering its letter A through E in the blank. 1. Just-in-time manufacturing A. Focuses on quality throughout the production process. 2. Continuous improvement B. Flexible product designs can be modified to accommodate customer choices. 3. Customer orientation C. Every manager and employee constantly looks for ways to improve company operations. 4. Total quality management D. Reports on financial, social, and environmental performance. 5. Triple bottom line E. Inventory is acquired or produced only as needed.arrow_forwardPer given item (A to P), Identify if it is under Financial Perspective, Customer Perspective, Learning Perspective or Internal Perspective The following items are connected to one of the four perspectives on the balanced scorecard: A. Revenue B. Inventory C. Employee satisfaction D. Customer satisfaction E. Market share F. Cycle time G. Orders M. Net Income H. Asset value N. Resource Allocation . Customer retention J. Employee education K. Quality contral L Brand strength O. Employee turnover P. Cash Flowarrow_forwardReid Company would like to implement a balanced scorecard performance measurement system. Its senior management team has assembled the measures shown below for possible inclusion in its scorecard. Required: For each measure, indicate by placing an X in the appropriate column whether it would most likely be classified in the learning and growth, internal business process, customer, or financial category of the company's balanced scorecard. Learning & Growth Internal Business Process Item Customer Financial Ex. Employee absenteeism rate X 1. Sales from new customers 2. Customer defection rate 3. Average fuel cost per sales dollar 4. Average number of workplace accidents per employee 5. Delivery cycle time 6. Average training hours per employee 7. Number of job applicants from under-represented groups Percent of customers that strongly agree with the statement 8. "Your employees treated me courteously." 9. Return on assets Percent of customers that strongly agree with the statement "Your…arrow_forward
- Case Study: Riversdale College Learning Management SystemTraditional face‐to‐face teaching still plays a critical role in teaching and learning, howeverchallenges such as COVID‐19 has necessitated the introduction of Learning Management Systems(LMS) in higher educational institutions at a large scale. An LMS is a software system designed toaid teaching and learning which operates in the World Wide Web, hence, having the flexibility ofanytime access (Ho, Higson, Dey & Xu, 2009). Riversdale College has invested in a Learning Management system in order to create, share andmanage the delivery of educational content. The LMS goal is in enhancing teaching and learning.The main aim of Riversdale College is to provide excellent educational opportunities that areresponsive to the needs of a demographically diverse student population and equip them toexceed challenges as active participants in shaping the future of our world. Riversdale Collegeuses the LMS in more innovative ways like…arrow_forward1. Responsibility Centers Indicate how each of the business situations below is most likely to be organized: cost center (CC), revenue center (RC), profit center (PC), or investment center (IC) A. The assembly department of Toyota Motors Corporation. B. The Ayala Mall car park ticket outlets. C. The Magnolia product division of San Miguel Corporation. D. The accounting department of SM Malls. E. The Project 8 branch of Starbucks Coffee. F. The College of Accountancy of the España University. G. The parts department of Suzuki Motors Corporation. H. The convenience store (Mini-Stop) that is owned by a chain organization; the head office supplies all the goods to be sold and determines the selling prices.arrow_forwardWhich 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_forward
- Determine whether the following items are objectives in the following areas: Financial, Internal Process, Customer, or Learning and GrowthNumber of counters that customers need to go to complete their transactions *a. Financialb. Customerc. Internal Processd. Learning and growtharrow_forwardList the business, technological, and organizational challenges that were addressed throughout the project to implement a new learning management system, and explain the three-sphere model for systems management in your own words. Do not depend on the examples in the textbook.arrow_forwardDescribing the balanced scorecard and identifying key performance indicators for each perspective Consider the following key performance indicators, and classify each indicator according to the balanced scorecard perspective it addresses. Choose from the financial perspective, customer perspective, internal business perspective, and the learning and growth perspective. a. Number of customer complaints b. Number of information system upgrades completed c. Residual income d. New product development time e. Employee turnover rate f. Percentage of products with online help manuals g. Customer retention h. Percentage of compensation based on performance i. Percentage of orders filled each week j. Gross margin growth k. Number of new patents l. Employee satisfaction ratings m. Manufacturing cycle time (average length of production process) n. Earnings growth o. Average machine setup time p. Number of new customers q. Employee promotion rate r. Cash flow from operations s. Customer…arrow_forward
- Digital learning that is synchronous Select one: a. involves the use of simulators that replicate the features of a work situation O b. seeks to change the attitudes of trainees and develop communication skills C. is used in group training to enhance interpersonal skills Od. provides for decision making and the development of problem-solving skills e. allows for real-time accessarrow_forwardMementos Academy is assessing whether to outsource its student enrolment processes. The general process followed by staff in the enrolment office is to first validate students’ prior academic record (e.g., secondary school results) and send an offer of enrolment, provide degree advice and enter students’ study program details into the student record system, and collect fees. The following table shows the costs associated with these three processes: Cost Validation Student records Fees collection Staff salaries 70,400 43,900 39,700 Data processing 9,200 32,500 7,900 Telephone 1,700 4,600 3,000 Postage - 1,500 4,000 Consumables 3,700 45,900 11,800 Electricity 1,600 3,100 3,000 Equipment depreciation 12,200 35,800 31,900 Insurance…arrow_forwardThe following if-then statements were taken from a Balanced Scorecard: a. If employee capabilities increase, then process time decreases. b. If process time decreases, then customer retention will increase. c. If customer retention increases, then market share will increase. d. If market share increases, then revenues will increase. Required: 1. Identify the lead and lag variables, and explain your reasoning. 2. Discuss the implications of Requirement 1 for the financial and learning and growth perspectives. 3. Using the first if-then statement, explain the concept of double-loop feedback.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
What is Business Analysis?; Author: WolvesAndFinance;https://www.youtube.com/watch?v=gG2WpW3sr6k;License: Standard Youtube License