Responsibility Centers. Petroleum Products, Inc., operates primarily in the United States and has several segments:
Accounting and finance: responsible for recording financial information and preparing financial reports.
Human resources: responsible for hiring employees and maintaining personnel records.
Retail stores: responsible for sales prices and all costs within each store.
Advertising: responsible for promotional materials.
Production: responsible for manufacturing company products.
International operations: acts as an independent segment responsible for all facets of the business outside of the United States.
Required:
For each of the preceding segments, identify whether it is a cost center, profit center, or investment center. Explain your answer.
Responsibility Centers. Petroleum Products, Inc., operates primarily in the United States and has several segments:
Accounting and finance: responsible for recording financial information and preparing financial reports.
Human resources: responsible for hiring employees and maintaining personnel records.
Retail stores: responsible for sales prices and all costs within each store.
Advertising: responsible for promotional materials.
Production: responsible for manufacturing company products.
International operations: acts as an independent segment responsible for all facets of the business outside of the United States.
Required:
For each of the preceding segments, identify whether it is a cost center, profit center, or investment center. Explain your answer.
