ACCOUNTING FOR COST, PROFIT AND INVESTMENT CENTERS

Module 3 – Case DEBTOR/CREDITOR RELATIONS, AGENCY, AND EMPLOYMENT Assignment Overview In this assignment, you will be presented with a variety of hypothetical scenarios. For each scenario, you need to

Module 4 – Case RESPONSIBILITY ACCOUNTING FOR COST, PROFIT AND INVESTMENT CENTERS Assignment Overview Review the three components in the background material to answer the questions and make computations relating to responsibility accounting. Case Assignment Short-Answer Questions 1. What is the fundamental principle of responsibility accounting? 2. List five important factors that should be considered in designing reports for a responsibility accounting system. 3. How soon should accounting reports be prepared after the end of the performance measurement period? Explain. 4. Name and describe three types of responsibility centers and list their main characteristics. 5. Give five real-world examples of at least two of the types of responsibility centers. 6. Many organizations limit the number of expense (cost) centers. a. List three reasons for wanting to limit cost centers. b. List three ideas for eliminating or reducing the size of an existing cost center. 7. What is the connection between the extent of decentralization