Identify and describe the five different responsibility centers, and provide one example of each
Cost Center: A responsibility center whose manager is accountable only for controllable costs that have well-defined relationships between the center's resources and products or services. Example: Ford Motor Company's Detroit assembly line
Discretionary Cost Center: A responsibility center whose manager is accountable for costs only and in which the relationship between resources and products or services produced is not well defined. Example: The Human Resources Department of Merck & Co.
Revenue Center: A responsibility center whose manager is accountable primarily for revenue and whose success is based on its ability to generate revenue. Example: Avis Car Rental's national reservation center
Profit Center: A responsibility center whose manager is accountable for both revenues and costs and for the resulting operating income. Example: The local Wal-Mart store
Investment Center: A responsibility center whose manager is accountable for profit generation and who can also make significant decisions about the resources the center uses. Example: The president of General Motors (The "company" is the investment center, and the president is the "manager.".)
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What is the primary barrier to applying the principles of the inclusive work place to international collaborations?
a. Greed b. Resources c. Commitment d. Community involvement
If a company wants to utilize data analytics in order to identify those traits that make a prospective customer more likely to purchase, it would use an application known as ________ ________.
Fill in the blank(s) with the appropriate word(s).
Bungert Inc. reported the following results from last year's operations: Sales$15,200,000Variable expenses 9,470,000Contribution margin 5,730,000Fixed expenses 4,818,000Net operating income$ 912,000The company's minimum required rate of return is 12% and its average operating assets were $8,000,000. Last year's residual income was closest to:
A. ($48,000) B. ($972,800) C. $992,000 D. $912,000