Following are a number of terms associated with decentralization in organizations: Cost centre..................................Profit centre Segment.......................................Investment centre Responsibility
Question:
Following are a number of terms associated with decentralization in organizations:
Cost centre..................................Profit centre
Segment.......................................Investment centre
Responsibility centre..................Transfer price
Job satisfaction
Required:
Fill in the blanks with the appropriate terms from the list provided.
1. A(n) _________ is a part or activity of an organization about which managers would like cost, revenue, or profit data.
2. Added responsibility and decision-making authority often result in increased _________.
3. A(n) _________ is a business segment whose manager is responsible for both cost and revenue but not investment funds.
4. When one segment, such as a division, of a company provides goods or services to another segment of the company, the _________ will determine how much revenue the segment recognizes on the transaction.
5. A(n) _________ is a business segment whose manager is responsible for costs but not revenue or investment funds.
6. A(n) _________ is any segment of an organization whose manager is responsible and accountable for cost, revenue, or investment funds.
7. A(n) _________ is a business segment whose manager is responsible for cost, revenue, and investments in operating assets.
Step by Step Answer:
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan