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ACCT 346 Responsibility Centers

ACCT 346 Responsibility Centers

Discussions Week 7 All Students Post 44 Pages

Compare and contrast the three types of responsibility centers. What is the best way to evaluate a manager’s performance in each type of center? What is the problem with using only financial measures of performance?…

What do each of the “centers” represent?
How do they measure performance?

It is important to understand how managers are evaluated since you may be evaluated by these same methods someday. Discuss your experiences with the way you are evaluated in your company, and how the managers in your company are evaluated.

problem #1:
A) Assume Lisa Inc has net income $7,000,000, interest expense of $1,500,000 and a tax rate of 40%. Calculate the NOPAT.
b)If this (same) company had sales of $10,000,000 what is the company’s profit margin?
C) What do these amounts tell us?…