If you are an accounting student then you belong to the Canberra Business School (CBS) of the Faculty of Business, Government & Law (BGL) of the University of Canberra. The CBS has a Head of School who looks after the costs of the school with an expense approval authority of $10,000 per annum. The BGL has an Executive Dean and responsible for preparing budget of the faculty and profit (the UC use the surplus over costs not the term profit). The central administration of the university which includes, the offices office of the Deputy Vice Chancellors incurs costs (regarded as overheads) but do not generate revenues. These costs are allocated to the faculties based on some formulas which means the faculties ultimately bear the corporate overhead costs. The Vice Chancellor is responsible for the overall surplus of the University.

Required:

1. What type of responsibility centre is CBS? Explain.

2. What type of responsibility centre is the Faculty of BGL? Explain

3. What type of responsibility centres are the Offices of Deputy Vice-Chancellors? Explain

4. What type of responsibility centre is the Vice-Chancellor be identified? Explain

5. Should the costs of the Offices of Deputy Vice-Chancellors be allocated to the faculties? Explain (Hint: think from the perspectives of results controls-based performance evaluations)