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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Organizations use a variety of performance measures to evaluate managers. Central to the idea ofresponsibility accounting is that performance measures are reflective of activities under a manager's influence and control. Organizations often identify different levels of responsibility and refer to these levels as segments.
The following performance measures and reports are used to evaluate managers of various segments:
Required:
For each performance measure and report listed below, indicate which segment (cost center, revenue center, profit center, investment center) they would most likely be used to evaluate.
| a. Return on investment | Select Cost Center Investment Center Profit Center Revenue Center Item 1 |
| b. Cost budgets | Select Cost Center Investment Center Profit Center Revenue Center Item 2 |
| c. Labor usage variance | Select Cost Center Investment Center Profit Center Revenue Center Item 3 |
| d. Sales budget | Select Cost Center Investment Center Profit Center Revenue Center Item 4 |
| e. Segment margin | Select Cost Center Investment Center Profit Center Revenue Center Item 5 |
| f. Sales volume variance | Select Cost Center Investment Center Profit Center Revenue Center Item 6 |
| g. Residual income | Select Cost Center Investment Center Profit Center Revenue Center Item 7 |
| h. Overall flexible budget variance | Select Cost Center Investment Center Profit Center Revenue Center Item 8 |
| i. Sales price variance | Â |
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