Consider each of the following independent scenarios:
a. Terrin Belson, plant manager for the laser printer factory of Compugear Inc., brushed his hair back and sighed. December had been a bad month: two machines had broken down, and some factory production workers (all on salary) were idled for part of the month. Materials prices increased, and insurance premiums on the factory increased. There was no way out of it; costs were going up. He hoped that the marketing vice-president would be able to push through some price increases, but that really wasn't his department.
b. Joanna Pauly was delighted to see that her ROI figures had increased for the third straight year. She was sure that her campaign to lower costs and use machinery more efficiently (enabling her factories to sell several older machines) was the reason why. Joanna planned to take full credit for the improvements at her semiannual performance review.
c. Gil Caron, sales manager for Computer Works, was not pleased with a memo from head- quarters detailing the recent cost increases for the laser printer line. Headquarters suggested raising prices. "Great," thought Gil, "an increase in price will kill sales and revenue will go down. Why can't the plant shape up and cut costs like every other company in Canada is doing? Why turn this into my problem?"
d. Susan Whitehorse looked at the quarterly profit/loss statement with disgust. Revenue was down, and cost was up-what a combination! Then she had an idea: If she cut back on maintenance of equipment and let a product engineer go, expenses would decrease-perhaps enough to reverse the trend in income.
e. Shonna Lowry had just been hired to improve the fortunes of the southern division of ABC Inc. She met with top staff and hammered out a three-year plan to improve the situation. A centrepiece of the plan is the retirement of obsolete equipment and the purchase of state-of-the-art, computer-assisted machinery. The new machinery would take time for the workers to learn to use, but once that was done, waste would be virtually eliminated.
Required:
For each of the above independent scenarios, indicate the type of responsibility centre involved (cost, revenue, profit, or investment).