Cynthia OBrien has identified the following five major functional areas: Marketing: Identify and develop customers, bring
Question:
• Marketing: Identify and develop customers, bring in the revenues, keep track of competitive landscape, and forecast demand conditions so that the division can budget and plan effectively.
• Production: Meet production targets by making the most efficient use of factory resources available.
• Planning and coordination: Coordinate all divisional functions so that everybody is on the same page. It is responsible for budgeting and ensuring implementation of budgets.
• Maintenance: Ensure proper functioning of plant and equipment and provide technical support to the production function.
• Purchasing: Oversee procurement of various input materials and inventory management.
This department also develops new vendors and evaluates outsourcing options.
Required:
Classify each of the five functions as a cost center or profit center. If classified as a cost center, discuss whether it is a discretionary cost center. Briefly describe how you will evaluate the performance of each function.
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Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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