ACC 202 Chapter Notes - Chapter 10: Profit Center, Market Price, Income Statement
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Frees up top management to focus on strategic planning. Lower level managers might not see the big picture (goal congruence) Location of a chain restaurant, prepared food department. Responsible for revenues, costs, and efficiently managing long-term assets. A division, headquarters, president & ceo, operations vp. Any segment of the business whose manager is accountable for specific activit. A segment is a part for activity in which managers would like cost, revenue, or profit data. , and label the fixed costs that cannot be traced to segments as common Overall company cmr is 30%, with sales totaling ,000. k in red, and red"s cmr is 20%, then sales in blue are: Sales margin * capital turnover (profitability * productivity) Increase in roi must involve at least one of the following. Operating income - (minimum required rate of return * total assets) Ri cannot be used to compare the performance of divisions of different sizes.