Hello, I really need this last question for my accounting course to be completed and I appreciate if anyone can answer it as soon as possible.
Lanier Company manufactures expensive watch cases sold as souvenirs. Three of its sales departments are: Retail Sales, Wholesale Sales, and Outlet Sales. The Retail Sales Department is a profit center. The Wholesale Sales Department is a cost center. Its managers merely take orders from customers who purchase through the company’s wholesale catalog. The Outlet Sales Department is an investment center because each manager is given full responsibility for an out-
let store location. The manager can hire and discharge employees, purchase, maintain, and sell equipment, and in general is fairly independent of company control.
Mary Gammel is a manager in the Retail Sales Department. Stephen Flott manages the Wholesale Sales Department. Jose Gomez manages the Golden Gate Club outlet store in San Francisco. The following are the budget responsibility reports for each of the three departments.
I have attached documents of the question but if for some reason you cannot access them, this is a link to the question. It's number BYP21-2
(a) Determine which of the items should be included in the responsibility report for each of the
(b) Compare the budgeted measures with the actual results. Decide which results should be called
to the attention of each manager.
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