General Instructions:

For this case, you will be responsible for preparing a memo in a Word document to address the situation. Memo formats are available in Word under File, New, Search on Professional Memos or Memos for options. You can select a format or create your own memo in Word. If you create your own, be sure to follow general memo format rules such as Link (Links to an external site.) (Links to an external site.)Furthermore, the link contains helpful information in the format of the body of a memo ie. single spacing, flush to the left margin no indent, etc.

Detailed Instructions: In a business setting, we are often asked to write a memo to communicate with internal and external professionals. This assignment further advances your communications within an organization through the use of a memo.

Background:

As the senior accountant at Technology on Demand (TOD), which manufactures mobile technology such as flip phones, smartphones, notebooks, and smart watches, your role with the budget process continues.

You are very pleased with how well the budget workshop held on September 21^st went. Department managers came, were engaged, and asked a number of important questions.

Michelle Dodd advised department managers that you would follow up in a memo to address a few of the department managers questions.

Department managers asked:

1. What is decentralization?
2. What does the current organizational chart of the organization look like based on the entire organization? TOD falls under the Technology division of the corporate headquarters, Johnson Holding Company. The only other division is Office Equipment.
3. What responsibility center will the department managers be evaluated on? Provide details of this type of cost center.
4. What are responsibility reports and the controllability concept?
5. What is managerial performance measurement?

In consideration of the background, prepare a memo in a Word document to submit to the department managers with a cc to the controller.

• An introduction paragraph advising department managers that your memo is addressing questions stemming from the budget workshop held on September 21^st is needed.
• In responding to questions, you will want to begin your discussion by explaining decentralization.
• Department managers requested a copy of the current organizational chart. Please insert a diagram of the organizational chart. You can insert shapes in your memo, prepare in a Word table, or Excel with a copy and paste into your main Word document. A general flow description will work. Department managers represent the sales department, production department, research and development department, and the accounting department. The production department consists of the assembly department, inspection department, and finishing department.
• Then address the remaining questions outlined above.
• End your memo with a closing paragraph.