Explain and provide a business example for each responsibility center: cost center, profit center and investment...
Explain and provide a business example for each responsibility center: cost center, profit center and investment center.
Homework Answers
Cost Center:
Cost center isa part of an organization to which costs may be charged for accounting purposes. Typically, it incurs cost but indirectly contributes to revenue generation. Examples will be accounting department, legal department, research and development department, marketing and customer service department.
Profit Center
Profit center is a part of an organization with assignable revenues and costs and hence ascertainable profitability.It uses company resources to generate income. We can think of this as a segment that earns money or creates sales for the business. The best example will be Sales Department.
Investment Center
Investment center is a business unit that utilizes the capital Of the entity and do the investment. This helps in directly contributing to company's profitability. Its performance is evaluated on the basis of revenue it brings through investment in capital assets compared to overall expenses. The best example will be the financing arm of a departmental store and automobile maker.
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Explain and provide a business example for each responsibility
center: cost center, profit center and investment...
Assignment Details The decision-making authority assigned to managers within the different responsibility centers (cost, profit and...
Assignment Details The decision-making authority assigned to managers within the different responsibility centers (cost, profit and investment) will differ based on the type of center because the role of management’s responsibilities also differs. Therefore, the accounting information required for planning, control, and performance evaluation differs according to the nature of these responsibilities. In 400-600 words address the following: Distinguish among a cost center, a profit center, and an investment center. Provide an example of each for a multi-hospital corporation. What...
Which responsibility centers generate both revenues and costs? Question 20 options: Investment and profit centers Profit...
Which responsibility centers generate both revenues and costs? Question 20 options: Investment and profit centers Profit and cost centers Cost and investment centers Only profit centers A profit center is Question 21 options: a responsibility center that always reports a profit. a responsibility center that incurs costs and generates revenues. evaluated by the rate of return earned on the investment allocated to the center. referred to as a loss center when operations do not meet the company's objectives.
a profit center is wrong， so which is right answer？ A responsibility center in which the...
a profit center is wrong， so which is right answer？
A responsibility center in which the department manager is responsible for costs, revenues, and assets for a department is called: O a profit center Oa cost center Oan operating center Oan investment center
Depending on the level of organization (cost center vs profit center vs investment center), the idea...
Depending on the level of organization (cost center vs profit center vs investment center), the idea of responsibility accounting defines the techniques used to evaluate the performance of individuals and managers. If you’ve been involved in an organization using performance evaluation techniques, please discuss the system in terms of its design, implementation, and overall effectiveness. Did it provide useful information on performance as well as motivate those subject to the system. What were its strengths and weaknesses, and given all...
Each of the following situations describes an organizational unit. Identify which type of responsibility center each...
Each of the following situations describes an organizational unit. Identify which type of responsibility center each underlined item is (cost, revenue, profit, or investment Center Organization Type of Responsibility Center (Cost, Revenue, Profit, or Investment) Revenue a. Sherwin-Willams Store 1933 is located in Copley, Ohio. The store sells paints, wallpapers, and supplies to do-it-yourself customers and to professional wall covering installers. b. The Accounting Research and Compliance Department at FirstEnergy is responsible for researching how new accounting pronouncements and rules...
For each of the following organizational subunits, indicate the type of responsibility center that is most...
For each of the following organizational subunits, indicate the type of responsibility center that is most appropriate. Cost center or profit center Cost center or profit center Cost center 1. A movie theater in a company that operates a chain of theaters. 2. A radio station owned by a large broadcasting network. 3. The claims department in an insurance company 4. The ticket sales division of a major airline. 5. A bottling plant of a soft drink company. An orange...
Problem 4 . Part A: Label each center described below according to what type of responsibility...
Problem 4 . Part A: Label each center described below according to what type of responsibility center it is. (In other words, is it a cost, revenue, profit, or investment center?) _____________________________ UNM’s Human Resources Department _____________________________ The Albuquerque REI store _____________________________ A Hotel’s Reservation/Sales Division _____________________________ Samsung’s Quality Control Department _____________________________ Monroe’s Catering Division _____________________________ Panera’s Food Sourcing/Procurement Division Part B: Label each of the following as one of the four Balance Scorecard perspectives (i.e., Learning & Growth, Internal...
The responsibility center in which the manager has responsibility and authority over revenues and costs, but...
The responsibility center in which the manager has responsibility and authority over revenues and costs, but not assets, is the Multiple Choice revenue center investment center, profit center. cost center The minimum required rate of return for a project is the: Multiple Choice Ο accounting rate of return. Ο hurdle rate. Ο annual rate of return. Ο internal rate of return.
Explain incremental revenues and incremental costs. Provide a business example for each of these terms.
Explain incremental revenues and incremental costs. Provide a business example for each of these terms.
Explain incremental revenues and incremental costs. Provide a business example for each of these terms.
Explain incremental revenues and incremental costs. Provide a business example for each of these terms.
a profit center is wrong， so which is right answer？
A responsibility center in which the department manager is responsible for costs, revenues, and assets for a department is called: O a profit center Oa cost center Oan operating center Oan investment center
Each of the following situations describes an organizational unit. Identify which type of responsibility center each underlined item is (cost, revenue, profit, or investment Center Organization Type of Responsibility Center (Cost, Revenue, Profit, or Investment) Revenue a. Sherwin-Willams Store 1933 is located in Copley, Ohio. The store sells paints, wallpapers, and supplies to do-it-yourself customers and to professional wall covering installers. b. The Accounting Research and Compliance Department at FirstEnergy is responsible for researching how new accounting pronouncements and rules...
For each of the following organizational subunits, indicate the type of responsibility center that is most appropriate. Cost center or profit center Cost center or profit center Cost center 1. A movie theater in a company that operates a chain of theaters. 2. A radio station owned by a large broadcasting network. 3. The claims department in an insurance company 4. The ticket sales division of a major airline. 5. A bottling plant of a soft drink company. An orange...
The responsibility center in which the manager has responsibility and authority over revenues and costs, but not assets, is the Multiple Choice revenue center investment center, profit center. cost center The minimum required rate of return for a project is the: Multiple Choice Ο accounting rate of return. Ο hurdle rate. Ο annual rate of return. Ο internal rate of return.
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