The Massillon Paper Company, which has its headquarters and manufacturing operations in the midwest, has as its
Question:
The Massillon Paper Company, which has its headquarters and manufacturing operations in the midwest, has as its principal product kraft wrapping paper. The company recently increased its production substantially and, for product outlets, acquired three corrugated box plants located in Canton, Akron, and Springfield, Ohio. Two bag manufacturing plants, located in Hempstead and Locust Valley, Long Island, were also acquired. This expansion required decentralization of much of the manufacturing operations, and there has been considerable discussion of decentralization of the accounting operations as well. As the chief cost accountant you have been asked to make a study and prepare a report covering the following points:
a What are the principal advantages of decentralization?
b Should the accounting and cost functions be decentralized?
c If decentralized, to whom should the local accountant report? Should the local accountant have line, staff, or functional responsibilities? pg58
Step by Step Answer:
Cost Accounting Concepts And Applications For Managerial Decision Making
ISBN: 9780070103108
2nd Edition
Authors: Ralph S. Polimeni, James A. Cashin, Frank J. Fabozzi, Arthur H. Adelberg