Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 12, Problem 41P
To determine
Write a memo to the General Manager recommending responsibility-center designation for each of the subunits.
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Classifying responsibility centers
Each of the following managers works for a national chain of hotels and has been given certain decision-making authority. Classify each of the managers according to the type of responsibility center he or she probably manages.
a. Manager of the Central Reservation Office
b. Managers of various corporate—owned hotel locations
c. Managers of the Northeast and Southeast Corporate Divisions
d. Manager of the Housekeeping Department at one hotel
e. Manager of the complimentary breakfast buffet at one hotel
When the hotel routes all of the financial data for their individual properties to a different site, this is called which of the following?
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For each office or business segment, indicate which type of Responsibility Center it is:
a. A retail location, such as the Apple Store   Â
b. A manufacturing division that manages its own facilities and production equipment   Â
c. Call center for a warranty claims processing   Â
d. Consulting department of an accounting firm   Â
e. Quality control department for a golf ball manufacturer    Â
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Chapter 12 Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
Ch. 12 - Why is goal congruence important to an...Ch. 12 - Define and give examples of the following terms:...Ch. 12 - Prob. 3RQCh. 12 - Explain the relationship between performance...Ch. 12 - Prob. 5RQCh. 12 - What is the key feature of activity-based...Ch. 12 - Prob. 7RQCh. 12 - Define and give examples of the following terms:...Ch. 12 - Give an example of a common resource in an...Ch. 12 - Explain how and why cost allocation might be used...
Ch. 12 - Define the term cost allocation base. What would...Ch. 12 - Referring to Exhibit 125, why are marketing costs...Ch. 12 - Prob. 13RQCh. 12 - Why do some managers and accountants choose not to...Ch. 12 - Why is it important in responsibility accounting...Ch. 12 - Prob. 16RQCh. 12 - Prob. 17RQCh. 12 - Prob. 18RQCh. 12 - Prob. 19RQCh. 12 - Prob. 21RQCh. 12 - Prob. 22RQCh. 12 - Prob. 23RQCh. 12 - Define the term manufacturing cycle efficiency.Ch. 12 - Prob. 25RQCh. 12 - What is meant by aggregate productivity, and what...Ch. 12 - For each of the following organizational subunits,...Ch. 12 - Prob. 28ECh. 12 - Prob. 29ECh. 12 - The following data pertain to the Waikiki Sands...Ch. 12 - Lackawanna Community College has three divisions:...Ch. 12 - Countywide Cable Services, Inc. is organized with...Ch. 12 - Prob. 36ECh. 12 - Prob. 37ECh. 12 - Prob. 38ECh. 12 - Prob. 39PCh. 12 - Prob. 40PCh. 12 - Prob. 41PCh. 12 - Rocky Mountain General Hospital serves three...Ch. 12 - Refer to the organization chart for Rocky Mountain...Ch. 12 - Prob. 44PCh. 12 - Buckeye Department Stores, Inc. operates a chain...Ch. 12 - Building Services, Co. (BSC) was started a number...Ch. 12 - Warriner Equipment Company, which is located in...Ch. 12 - Prob. 49PCh. 12 - MedTech, Inc. manufactures diagnostic testing...Ch. 12 - Prob. 51PCh. 12 - Cathys Classic Clothes is a retailer that sells to...Ch. 12 - Pacific Rim Industries is a diversified company...
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- For 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_forwardGoodworks 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_forwardFor each of the following managers, describe how managerial accounting could be used to satisfy strategic or operational objectives:1. The vice president of the Information Systems Division of a bank.2. A hospital administrator.3. The chief executive officer of a food company. The food company is divided into three divisions: Nonalcoholic Beverages, Snack Foods, and Fast-Food Restaurants.4. The manager of the local campus copy shop.arrow_forward
- For each of the following managers, describe how managerial accounting could be used to satisfy strategic and operational objectives: 1, The vice president of the Information Systems Division of a Bank. 2. A Hospital Administrator. 3. The chief executive officer of a food company. The food company is divided into three divisions: Nonalcoholic beverages, snacks and foods, and fast-food restaurants. 4. The manager of the local campus copy shop.arrow_forwardActivity Bases for Service Department Charges For each of the following service departments, select the activity base listed that is most appropriate for charging service expenses to responsible units. Your answer should include the number of the activity base only. Activity bases to choose from: Number of conference attendees Number of computers Number of employees trained Number of cell phone minutes used Number of purchase requisitions Number of sales invoices Number of payroll checks Number of travel claims Service Department Activity Base a.  Accounts Receivable fill in the blank 1 b.  Central Purchasing fill in the blank 2 c.  Computer Support fill in the blank 3 d.  Conferences fill in the blank 4 e.  Employee Travel fill in the blank 5 f.  Payroll Accounting fill in the blank 6 g.  Telecommunications fill in the blank 7 h.  Training fill in the blank 8arrow_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
- For the following activitie, explain which of the objectives of managerial accounting activity is involved. In some cases, several objectives may be involved. Comparing a Sheraton Hotel’s room rate structure, occupancy rate, and restaurant patronage with industry averages.arrow_forwardManagement requests departmental income statements for Gamer’s Haven, a computer store that has five departments. Three are operating departments (Hardware, Software, and Repairs) and two are service departments (general office and purchasing).arrow_forwardDesignating Responsibility Centers; Hotel The following partial organization chart is an extension of Exhibit 12–1 for Aloha Hotels and Resorts.                   Waikiki Sands Hotel  Grounds and     Housekeeping and     Recreational                Maintenance        Custodial          Services         Department         Department         Department  ----------------------------------------------------------------- Hospitality          Food and                                     Department         Beverage                                                     Department                                          Front Desk             Bell Staff        Guest Services  Each of the hotel’s five main departments is managed by a director (e.g., director…arrow_forward
- Which General Staff member negotiates and monitors contracts, maintains documentation for reimbursement, and oversees timekeeping for incident personnel? A.Finance/Administration Section Chief B. Operations Section Chief C. Logistics Section Chief D. Planning Section Chief.arrow_forwardGive an example of managerial accounting information that could help a manager make the following decision. The Miami-Dade County board of representatives is deciding whether to build an addition onto one of the county libraries.arrow_forwardIdentify which department has stewardship (having the job of supervising or taking care of) over the following journals, ledgers, and files. (Please be reminded of the Honor Pledge written in your answer sheet.) 1. Customer open order file  2. Sales journal 3. Journal voucher file  4. Cash receipts journal 5. Inventory subsidiary ledger 6. Accounts receivable subsidiary ledger 7. Sales history file 8. Shipping report file 9. Credit memo file10. Sales order file11. Closed sales order file    PreviousNextarrow_forward
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