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1.) a. Differentiate between centralized and decentralized operations. b. Differentiate between a profit center and an investment center. 2.) Weyerhaeuser Co. (WY) developed a system
1.) a. Differentiate between centralized and decentralized operations. b. Differentiate between a profit center and an investment center. 2.) Weyerhaeuser Co. (WY) developed a system that allocates support department costs to user divisions on the basis of actual services consumed by the division. Here are a number of Weyerhaeuser's activities in its central Financial Services Department: Payroll Accounts payable Accounts receivable Database administrationreport preparation For each activity, identify an activity base that could be used to allocate user divisions for service. 3.) (a) Explain how return on investment might lead a divisional manager to reject new investments that could be profitable for the company as a whole. (b) How can this disadvantage be overcome? 4.) When using the negotiated price approach to transfer pricing, within what range should the transfer price be established
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