Blake field, Inc. has grown significantly over the past decade through innovation and acquisition. Information on several of its divisions follows.
• The OlliePods division sells children's recreational shoes. The division's president is responsible for all short-run decisions on the manufacturing and sale of the shoes.
• The Polyspreen division manufactures the main ingredient for the shoes produced by Olliepads. All Polyspreen output is transferred to the OlliePods division.
• All long-run strategic decisions for the Olliepods and Polyspreen divisions are made by the staff at corporate headquarters.
• Monk Recreation, which operates a regional chain of retail sporting goods stores, is Blake field's newest corporate acquisition. Blake field managers have decided to retain all Monk Recreation employees, and all decision-making responsibility related to the sporting goods stores remains with those employees.

a. Classify each of the three divisions of Blake field, Inc. as a cost center, a profit center, or an investment center.
b. What type of responsibility center is the corporate headquarters group?

  • CreatedFebruary 21, 2014
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