The following describes a variety of business situations: (a) A convenience store that is owned by a
Question:
The following describes a variety of business situations:
(a) A convenience store that is owned by a chain organization. The goods to be sold and the selling prices are all determined by the corporate office.
(b) The wing assembly department of a private airplane manufacturer.
(c) The janitorial department of an office furniture manufacturer.
(d) The women’s shoe department in a large retail store. The buyer, an assistant department manager, decides which styles, sizes, etc., are purchased. The department supervisor set selling prices
(e) The marketing department of a local TV station.
(f) The purchasing department for a large electronics company.
(g) The parts department of an automobile dealership.
(h) The PC product line of a major computer manufacturer that is organized by product lines
(i) The technical support department for a large computer software company, Customers call an 800 number and ask questions about problems they are experiencing with software purchased from the company.
(j) The car pool operation for a city government. City officials needing cars check them out for the days of travel.
Required:
For each business segment, indicate how it is most likely to be organized, as a cost center, a profit center, or an investment center. State any additional assumptions you feel are necessary to clarify a situation.
Accounting Information Systems
ISBN: 978-1133935940
10th edition
Authors: Ulric J. Gelinas, Richard B. Dull