Refer to the example of responsibility coding depicted in Figure 14-4.

Required

a. Design a coding scheme that will support the production of this set of reports. Make and state any assumptions you believe are necessary.

b. Write a brief (half-page) explanation of how your coding scheme works.

c. Suggest improvements in the set of reports depicted in Figure 14-4.

Transcribed Image Text:

Co M Producti ABC Manufacturing Company DEPARTMENTAL COST SUMMARY M Mach $310 $1601155 Sok P C $224,705 HO 80 V 1st level President and General Manager Figure 14-4 Sample Set of Reports for a Responsibility Accounting System Are Stelar The Myd $5,000 $530 ABC Manufacturing Company FACTORY COST SUMMARY $2110 $12000 45117 2nd level Vice President of Production ABC Manufacturing Co FUGAL STO PRODUCTIVE DEPARTMENTAL COST SUMMARY A Moh Ser 560 300 g $117,280 35 25 3000 Marth D Mone D 3rd level General Superintendent Nech Aly Toby $8,160 53550 $1470 22 1280 3040 0005130 ABC Manufacturing Company DRILL PRESS COSTS 1 4th level Drill Press Floor Manager $ 35 19 Day