You have been hired as a Cost Accountant by Sundial, Inc., which produces sunglasses. Your duties include developing cost standards for materials and labor, designing and implementing cost accounting systems, defining various product and operational costs, analyzing production costs and recommending changes. When the trial period is over, you will have a performance review to demonstrate the completed tasks and gained knowledge.

In order to achieve the purpose of delegation, controlling tasks, and improving decision-making, Sundial, Inc. decides to decentralize and introduce a Management Control System. As a new assignment, your boss asks you to prepare a proposal for Responsibility Accounting, which implies creation of four decentralized units (responsibility centers).

The organizational structure of Sundial, Inc. looks as follows:

1. Design the project to implement the decentralized structure in Sundial, Inc. that includes creating responsibility centers. Identify the divisions that are going to represent each of the four types of the responsibility centers. Explain the functions of each of the responsibility centers and how they are going to be exercised by the divisions.

Divisions Vice President Sunglasses Product Manager Sunglasses Plant Manager Sundial, Inc. President and CEO Finance CFO Sunglasses Distribution Manager Legal General Counsel Personnel Vice President Divisions Vice President Sunglasses Product Manager Sunglasses Plant Manager Sundial, Inc. President and CEO Finance CFO Sunglasses Distribution Manager Legal General Counsel Personnel Vice President