1.  Describe the advantages of responsibility accounting for the managers of a firm.

b. The regional and district managers accepted Family Resort’s budget. Based on the facts presented, evaluate the budget process Family Resorts employs by addressing the following:

1.. What features of the budget presentation shown are likely to make the budget attractive to managers?

2.. What recommendations, if any, could be made to the budget preparers to improve the budget process? Explain your answer.

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Reporting Unit: Family Resorts Responsible Person: President Mid-Atlantic Region New England Region Unallocated costs Income before taxes Reporting Unit: New England Region Responsible Person: Regional Manager Vermont New Hampshire Maine Unallocated costs Total contribution Problem 16: Responsibility Accounting FAMILY RESORTS, INC. RESPONSIBILITY SUMMARY ($000 omitted) $ 605 365 (160) $ 810 Reporting Unit: Maine District Responsible Person: District Manager Harbor Inn Camden Country Inn Unallocated costs Total contribution $ 200 140 105 (80) $ 365 Reporting Unit: Harbor Inn Responsible Person: Innkeeper Revenue Controllable costs Allocated costs Total contribution $ 80 88 60 (35) $ 105 $ 600 (455) (65) $ 80