Question
Each of the following situations describes an organizational unit. Identify which type of responsibility center each underlined item is (cost, revenue, profit, or investment center).
Each of the following situations describes an organizational unit. Identify which type of responsibility center each underlined item is (cost, revenue, profit, or investment center).
| Organization | Type of Responsibility Center (Cost, Revenue, Profit, or Investment) |
---|---|---|
a. | Sherwin-Williams Store #1933 is located in Copley, Ohio. The store sells paints, wallpapers, and supplies to do-it-yourself customers and to professional wall covering installers. | Profit |
b. | The Accounting Research and Compliance Department at FirstEnergy is responsible for researching how new accounting pronouncements and rules will impact FirstEnergy's financial statements. | Cost |
c. | The Southwestern Sales Region of McDermott Foods is responsible for selling the various product lines of McDermott. | Revenue |
| Organization | Type of Responsibility Center (Cost, Revenue, Profit, or Investment) |
---|---|---|
d. | The Taxation Department at Verizon Communications, Inc., is responsible for preparing the federal, state, and local income and franchise tax returns for the corporation. | Cost |
e. | The Roseville Chipotle restaurant in Minnesota, is owned by its parent Chipotle Mexican Grill, Inc. The Roseville Chipotle, like other Chipotle restaurants, serves burritos, fajitas, and tacos and competes in the "fast-casual" dining category. | Profit |
f. | Trek Bicycle Corporation manufactures and distributes bicycles and cycling products under the Trek, Gary Fisher, Bontrager, and Klein brand names. | Investment |
| Organization | Type of Responsibility Center (Cost, Revenue, Profit, or Investment) | ||
---|---|---|---|---|
g. | The Hershey Company is one of the oldest chocolate companies in the United States. Its product lines include the Mauna Loa Macadamia Nuts, Dagoba Organic Chocolates, and Joseph Schmidt Confections. |
| ||
h. | The Human Resources Department is responsible for recruiting and training for the Kohl's Corporation. |
| ||
i. | The reservation office for BlueSky Airlines, Inc., is responsible for both online sales and counter sales. |
|
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