Differentiate among the three common classiﬁcations of responsibility centers. Choose two different kinds of organizations and provide an example (other than those given in the text) of each type of center.
Answer to relevant QuestionsIdentify the four major ﬁnancial statements. What information is contained on each of these statements? Why do businesses issue ﬁnancial statements? How is the ability to measure performance affected by a responsibility center’s classiﬁcation? Why is it important to only evaluate managers based on the costs that they are able to control? Why should an organization select multiple metrics to measure performance? Why is there a need to measure performance using both short-run and long-run time horizons? Consider your enrollment in this class as your job. Required: Using each of the four balanced scorecard categories, develop two measurements that would be appropriate to judge your performance in this class. Gray Corp. has three divisions that are classiﬁed as invest- ment centers. Selected ﬁnancial information about the each division follows. Required: (a) Calculate the return on investment for each division. How would you ...
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