LO 12.1For the following situations identify whether the description is a centralized or decentralized organization.
- the United States Navy
- Farah’s Domino’s franchise store
- Domino’s Pizza
- Middie’s Furniture, which is divided into separate operating units, such as living room, kitchen, flooring
- the local community college, which has a single payroll department, a single administrative headquarters, and a single human resources department since it “flattened” its organization structure
- Conner Corporation, which promotes managers from within the organization whenever possible and which has formal training programs for lower-level managers
LO 12.1For the following descriptions, state whether the cost is controllable or uncontrollable by responsibility center managers.
- advertising for a merchandiser
- corporate income taxes
- office supplies for a merchandiser
- donations to the Salvation Army
- insurance for delivery vehicles
LO 12.1Identify the type of responsibility center (revenue center, cost center, profit center, or investment center) for each of the following situations.
- the legal department for Avon Manufacturing
- the Macy’s store in Mansfield, Ohio
- the food and beverage division of the Best Western
- the marketing department of the Hershey Company
- the Walmart #5030 on Central Avenue in Toledo, Ohio
- Apple’s Braeburn Capital Inc., where most of Apple’s billions of dollars are invested
- Zappo’s department store
- the men’s clothing department in the Walmart #5030 in Toledo, Ohio
LO 12.2Padma completed her doctoral degree and has taken a position as an assistant professor at a local university. She was given the following performance measures for her new position. Identify whether these goals are long or short term.
- Interact in a fair and impartial way with students.
- Promote and access student academic achievement.
- Counsel students within the norms of society and the regulations of the college.
- Motivate students.
- Effectively plan and organize lectures and labs in accordance with the college course outlines.
- Report class attendance in accordance with the college policy and procedure.
- Serve on academic committees as assigned.
- Make progress toward tenure necessary at her university.
LO 12.3During the current year, Plainfield Manufacturing earned income of $845,000 from total sales of $9,350,000 and average capital assets of $13,500,000. What is the sales margin?
LO 12.3Assume Plainfield Manufacturing has debt of $6,500,000 with a cost of capital of 9.5% and equity of $4,500,000 with a cost of capital of 11.5%. What is Tyler’s weighted average cost of capital?
LO 12.3Though a high ROI is desired, what are some reasons that might lead to a low or decreased ROI?
LO 12.4Classify each of the following performance measures into the balanced scorecard perspective to which it relates: financial perspective, internal operations perspective, learning and growth perspective, or customer perspective.
- Employee satisfaction surveys
- Units of waste per production process, uniformity of products and inventory control
- Number of energy-efficient bulbs replaced
- Management training course certificates awarded
- Divisional profit
- Number of customer referrals