Acc Assignment - 1. Assignment: Responsibility Center...

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1. Assignment: Responsibility Center Imagine you have been selected by your manager to present a training session to a group of new employees. The new hires do not have accounting backgrounds and have little or no work history in a responsibility center. The purpose of this training session is to explain the functions of each of the different responsibility centers. Write a 700- to 1,050- word paper that addresses the following questions: Explain what each of the different responsibility centers is and what each is accountable for and why each center has its own budget. Provide an example of the kinds of decisions where incremental analysis would be used in each center. Within every company there are three types of responsibility centers. These centers are cost centers, profit centers, and investment centers. Each center is responsible for its own parts of the company. This training session will discuss what each of the three centers are, what their responsibilities are, why they need their own budgets, and how each center uses incremental analysis to make decisions. Cost centers are responsibility centers that incur costs and expenses but don’t directly make money. These centers are usually the production departments or service departments. Production departments make the product, incurring expenses, but do not sell the product to gain revenue. For example, the production department would include such things as the installation of services in the customer’s home or work. The service departments are the support services within the company, such as maintenance and human resources. Cost centers are responsible for
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This note was uploaded on 12/12/2010 for the course ACC 220 taught by Professor - during the Spring '10 term at University of Phoenix.

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Acc Assignment - 1. Assignment: Responsibility Center...

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