ACG 2071 Lecture Notes - Lecture 18: Fixed Cost, Variable Cost, Sales Territory

• School: University of Florida
• Department: Accounting
• Course: ACG 2071
• Professor: Schadewald

Document Summary

Examples of how segments are defined: geographic region east coast, west coast, center, product line business products, consumer products, distribution channel brick-and-mortar stores, online sales, business function r&d, shipping, hr, legal. Ma(cid:374)ager"s respo(cid:374)si(cid:271)ility: control costs, generate sales revenue, control costs, generate sales revenue, control costs, generate sales revenue, manage capital assets. Examples: production department, service department, sales territory, retail store, branch office of bank, subsidiary company. Responsibility accounting: hierarchical nature of system: manager who oversees performance report for responsibility center, ceo: divisions, divisional manager: product lines, product line manager: profits, plant or sales manager: production or sales. Responsibility accounting and budgeting: key element of budgetary control system, responsibility accounting, focus on costs controllable by segment manager, controllable costs, top management can control most costs, lower-level managers control fewer costs. Bakery department at publix store, which reports revenues and expenses. Ma(cid:272)y"s fa(cid:272)ility that pro(cid:272)esses (cid:272)usto(cid:373)er returns of unwanted merchandise. Corporate-owned bp gas station, which reports revenues and expenses.