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Chapter 13 Responsibility Accounting and Transfer Pricing in Decentralized Organizations

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Chapter 13 Responsibility Accounting and Transfer Pricing in Decentralized Organizations

Chapter 13 Responsibility Accounting and Transfer Pricing in Decentralized Organizations

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Chapter 13--Responsibility Accounting and Transfer Pricing in Decentralized Organizations LEARNING OBJECTIVES LO 1 Which organizational characteristics determine whether a firm should be decentralized or centralized? LO 2 How are decentralization and responsibility accounting related? LO 3 What are the differences among the four primary types of responsibility centers? LO 4 Why and how are service department costs allocated to revenue-producing departments? LO 5 What types of transfer prices are used in organizations, and why are such prices used? LO 6 What difficulties can be encountered by multinational companies using transfer prices? QUESTION GRID True/False Difficulty Level Learning Objectives Easy Moderate Difficult LO 1 LO 2 LO 3 LO 4 LO 5 LO 6 1 x x 2 x x 3 x x 4 x x 5 x x 6 x x 7 x x 8 x x 9 x x 10 x x 11 x x 12 x x 13 x x 14 x x 15 x x 16 x x 17 x x 18 x x 19 x x 20 x x 21 x x 22 x x 23 x x 24 x x 25 x x 26 x x 27 x x 28 x x 29 x x 30 x x Difficulty Level Learning Objectives 214
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Easy Moderate Difficult LO 1 LO 2 LO 3 LO 4 LO 5 LO 6 31 x x 32 x x 33 x x 34 x x 35 X x 36 X x 37 X x 38 X x 39 X x 40 X x 41 X x Completion Difficulty Level Learning Objectives Easy Moderate Difficult LO 1 LO 2 LO 3 LO 4 LO 5 LO 6 1 x x 2 x x 3 x x 4 x x 5 x x 6 x x 7 x x 8 X x 9 x x 10 x x 11 x x 12 X x 13 X x Multiple Choice Difficulty Level Learning Objectives Easy Moderate Difficult LO 1 LO 2 LO 3 LO 4 LO 5 LO 6 1 x x 2 x x 3 x x 4 x x 5 x x 6 x x 7 x x 8 x x 9 x x 10 x x 11 x x 12 X x 13 X x 14 x x 15 X x 16 X x 17 X x 18 X x Difficulty Level Learning Objectives Easy Moderate Difficult LO 1 LO 2 LO 3 LO 4 LO 5 LO 6 19 x x 215
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20 x x 21 x x 22 x x 23 x x 24 x x 25 x x 26 x x 27 x x 28 x x 29 x x 30 x x 31 x x 32 x x 33 x x 34 x x 35 x x 36 x x 37 x x 38 x x 39 x x 40 x x 41 x x 42 x x 43 x x 44 x x 45 x x 46 x x 47 x x 48 x x 49 x x 50 x x 51 x x 52 x x 53 x x 54 x x 55 x x 56 x x 57 x x 58 x x 59 x x 60 x x 61 x x 62 x x 63 x x 64 x x 65 x x 66 x x 67 x x Difficulty Level Learning Objectives Easy Moderate Difficult LO 1 LO 2 LO 3 LO 4 LO 5 LO 6 68 x x 69 x x 70 x x 216
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71 x x 72 x x 73 x x 74 x x 75 x x 76 x x 77 x x 78 x x 79 x x 80 x x 81 x x 82 x x 83 x x 84 x x 85 x x 86 x x 87 x x 88 x x 89 x x 90 x x 91 x x 92 x x 93 x x Short-Answer Difficulty Level Learning Objectives Easy Moderate Difficult LO 1 LO 2 LO 3 LO 4 LO 5 LO 6 1 x x 2 x x 3 x x 4 x x 5 x x 6 x x 7 x x 8 x x 9 x x 10 x x Problems Difficulty Level Learning Objectives Easy Moderate Difficult LO 1 LO 2 LO 3 LO 4 LO 5 LO 6 1 x x 2 x x 3 x x 4 x x 5 x x 6 x x Difficulty Level Learning Objectives Easy Moderate Difficult LO 1 LO 2 LO 3 LO 4 LO 5 LO 6 7 x x 8 x x 9 x x 10 x x 11 x x 12 x x 217
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13 x x 14 x x 15 x x 16 x x 17 x x 18 x x 19 x x 218
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TRUE/FALSE 1. Decentralization is a transfer of authority from the bottom to the top of an organization. ANS: F
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