Question: Janice Black manager of the Produce Department at Spanky s Grocery
Janice Black, manager of the Produce Department at Spanky’s Grocery, has a monthly responsibility margin of $4,000. The store manager has decided to allocate storewide common costs to each department. After the allocation, Ms. Black’s responsibility margin is-$1,200 per month. Identify the disadvantages of allocating common costs to responsibility centers.
Answer to relevant QuestionsThe following are nine technical accounting terms introduced or emphasized in this chapter:Each of the following statements may (or may not) describe one of these technical terms. For each statement, indicate the accounting ...Top management of Drexel-Hall is considering closing Store 3. The three stores are close enough together that management estimates closing Store 3 would cause sales at Store 1 to increase by $60,000, and sales at Store 2 to ...Use the first paragraph in note 1 in Appendix A to create a responsibility center design for Home Depot. Your design should be similar to Exhibit 22–1 and show investment, profit, and cost centers for HomeDepot.Sparta and Associates produces trophies and has two divisions: the Green Division and the White Division. The Green Division produces the trophy base, which it can sell to outside markets for $150. A trophy base has variable ...You have just been hired as the controller of Land’s End Hotel. The hotel prepares monthly responsibility income statements in which all fixed costs are allocated among the various profit centers in the hotel, based on the ...
Post your question