Question: Why do organizations allocate costs to responsibility centers?

Why do organizations allocate costs to responsibility centers?


Step by Step Solution

★★★★★

3.32 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Organizations use many types of resources to make goods and services When organizati... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

62-B-A-F-A (176).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

Why do organizations allocate revenues to responsibility centers?

Q:

Why do management accountants allocate indirect costs to responsibility centres? Refer to the 'Real life' on page 289. What problems were encountered in allocating Prime Infrastructure costs to...

Q:

What is the fundamental principle of responsibility accounting? List five important factors that should be considered in designing reports for a responsibility accounting system. How soon should...

Q:

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...

Q:

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...

Q:

1) A company can expect to receive which of the following benefits when it starts its budgeting process? a) The budget provides managers with a benchmark against which to compare actual results for...

Q:

Janice Black, manager of the Produce Department at Spankys Grocery, has a monthly responsibility margin of $4,000. The store manager has decided to allocate storewide common costs to each department....

Q:

Janice Black, manager of the Produce Department at Spankys Grocery, has a monthly responsibility margin of $4,000. The store manager has decided to allocate storewide common costs to each department....

Q:

Morina Shaw, 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....

Q:

Can someone please help. Thank you! Case 22.1, Allocating Fixed Costs to Responsibility Centers You have just been hired as the controller of Land's End Hotel. The hotel prepares monthly...

Q:

Will improving customer service result in higher stock prices for the companies providing the better service? When a companys satisfaction score has improved over the prior years results and is above...

Q:

Write the semi-developed formula of the following alkenes: a. 2-heptene b. 1,3,5-heptatriene c. 1,3-pentadiene

Q:

True or False? When economic conditions weaken, most stocks tend to perform poorly.

Q:

What differentiates time value of money and risk?

Q:

Let P (A) = 0.15, P (B) = 0.10, and P (A B) = 0.05. a. Are A and B independent events? Explain. b. Are A and B mutually exclusive events? Explain. c. What is the probability that neither A nor B...

Q:

Dr. Miriam Johnson has been teaching accounting for over 20 years. From her experience she knows that 60% of her students do homework regularly. Moreover, 95% of the students who do their homework...

Q:

What is the relationship between the time value of money and inflation?

Q:

Organic Grounds produces two brands of coffee: Star and Bucks. The two coffees are produced in one factory using the same production process. The only difference between the two coffees is the cost...

Q:

In describing the phase of a substance, is it possible that a substance can have two phases at the same time, say, solid and liquid phase? Give examples or circumstances to support your answer.

Q:

If a target-costing system is used and the existing cost cannot be reduced to the target cost through cost reductions, management should not produce and sell the product. Do you agree? Explain.

Q:

Many sales managers have a good intuitive understanding of costs, but they often are imprecise in how they describe the costs. For example, one manager said the following: Increasing sales will...

Q:

Managers should base pricing decisions on both cost and market factors. In addition, they must also consider ethical and legal issues. Describe the influence that ethics and the law have on pricing...

Q:

One year ago, your company purchased a machine used in manufacturing for $95,000. You have learned that a new machine is available that offers many advantages and that you can purchase it for...

Q:

(1) The equation of the regression line is Y = a + bX. Match the following symbols to the description to the right. (1) Denotes the variable plotted on the horizontal axis and called the explanatory...

Q:

The following data represents the percentages of family income allocated to groceries for a random sample of 12 shoppers: 26 28 30 37 33 30 29 39 49 31 40 For these data, Calculate: 6.1 the mean (4)...