1. What is the issue?
2. What type of financial responsibility center terminology does USC use? Why?
3. The RCMS seems to be working reasonably well. USC has used it for over 25 years, andseemingly nobody wants to abandon it. What makes it effective?
4. Consider each of the criticisms of RCMS.Does it sound plausible that the RCMS could have been causing, or at least contributing to,the problem if, indeed, there was a problem?Which of the problems have been solved by the RCMS refinements thatwere implemented over the years? Which remain?
5. What should be done now? Does the RCMS create "perverse incentives"? If so, how? If not, why not? Reference : University of Southern California: Responsibility Center Management System Case study