Car City Is Divided into Three Divisions: New Car Sales

question 50

Short Answer

Car City is divided into three divisions: new car sales (NCS),used car sales (UCS),and parts and service (PAS).Each division is supervised by a division manager.The three division managers report to the general manager.Each division is subdivided into different departments managed by a department manager.For example,the PAS division has a parts department manager and a service department manager,and NCS has a department manager for auto sales and a department manager for truck sales.The following items were contained in the company's most recent responsibility report: a) Allocated utility costs for NCS division
b) Costs to rent vacarnt lot for storage of new vehicles
c) Parts reverue for the PAs division
d) Parts shippirg/delivery costs
e) Salary of the general manager
1) Salary of the parts department manager
e) Salary of the PAs division manager
1) Salary of the UCS division manager
i) Sales commission of UCS sales personnel
i) Service revenue for the PAs division
k) Training costs for mecharies in PAs division
1) Warranty repair costs Required:
Identify the items that are likely considered to be controllable by the Parts and Service division.

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Definitions:

Electrical Grid Substations

Facilities in the electric grid that transform voltage levels between the generating stations and consumers, facilitating the efficient transmission of electricity.

Fixed Charge Coverage Ratio

This ratio measures a company's ability to cover its fixed charges, such as interest and leases, with its earnings before interest and taxes.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's overall financial performance.

Loan Agreements

Contracts between a borrower and a lender outlining the terms and conditions of a loan.