Ryhan Company is a multinational computer services firm. The management of the company is decentralized, with division
Question:
Ryhan Company is a multinational computer services firm. The management of the company is decentralized, with division managers heading the following three divisions: Europe, Asia, and the Americas. Within each division, the three sources of revenue are software sales, service contracts, and consulting fees.
The following data are applicable to revenue for the year:
Required:
1. Prepare a responsibility accounting report for the head of the Europe Division. For each of the three revenue sources (software sales, service contracts, and consulting fees), show whether the variance between budget and actual is favorable or unfavorable.
2. Prepare a responsibility accounting report for the head of the entire company. The company head wants to see only the overall results for each of the three geographic divisions (budget versus actual); a detailed breakdown by revenue source is notrequested.
Step by Step Answer:
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain