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Most Large Organizations Establish Responsibility Centers (Sections,departments,divisions,etc

question 21

Essay

Most large organizations establish responsibility centers (sections,departments,divisions,etc.)in order to delegate decision-making authority to the individuals who are best suited to make decisions in those particular centers.Consider the following responsibility centers:
Responsibility Center Description
1) Louisville office of a regional CPA firm
2) Restaurarat in a Nordstron department store
3) Medical diaprostic equipment unit of General Electric
4) Maintenance department in a Toyota assembly plant
5) Cincinnati outlet of the Hampton Inn hotel chain
6) Home electronics division of Best Buy
7) Lawnmower division of Honda
8) Finishing department of a company that makes wooden fencing
9) Engine assembly department of John Deere
10) Customer service department of United Airlines
11) Check processing department of Citibank
12) Casting department of a small steel mill
13) Jeep division of Chrysler Motors
14) Derver location of Barnes and Noble
15) Baltimore office of an investment barking firm Required:
1)Three commonly found responsibility centers are cost centers,profit centers,and investment centers.Describe each type of center.
2)Which of each type of center will most likely be classified as: a cost center,profit center,or investment center?


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