The writer is very fast, professional and responded to the review request fast also. Thank you.
1 4-20 Cost allocation and decision making. G reenbold Manufactu ring has fou r d ivisions named after its locations: Arizona, Colorado, Delawa re, and Florida . Corporate headqua rters is in M innesota . G reenbold corporate headqua rters incu rs $8,400,000 per period, wh ich is an ind irect cost of the d ivisions. Corporate headqua rters cu rrently a l locates th is cost to the d ivisions based on the revenues of each d ivision . The CEO has asked each d ivision manager to suggest an a l location base for the ind irect headqua rters costs from among revenues, segment ma rg in, d irect costs, and number of employees. The fol lowing is relevant information about each d ivision : Arizona Colorado Delaware Florida Revenues $1 1 ,700,000 $1 2,750,000 $9,300,000 $8,250,000 D irect costs 7,950,000 6,1 50,000 6,450,000 6,900,000 Segment ma rg in $ 3,750,000 $ 6,600,000 $2,850,000 $1 ,350,000 Number of employees 3,000 6,000 2,250 750
1 . Al locate the ind irect headqua rters costs of G reenbold Manufactu ring to each of the fou r d ivisions using revenues, d irect costs, segment ma rg in, and number of employees as the a l location bases. Ca lculate operating ma rg ins for each d ivision after a l locating headqua rters costs.
2. Wh ich a l location base do you th ink the manager of the Florida d ivision wou ld prefer? Expla in .
3. What factors wou ld you consider in dec id ing wh ich a l location base G reenbold shou ld use? 4. Suppose the G reenbold CEO dec ides to use d irect costs as the a l location base. Shou ld the Florida d ivision be c losed? Why or why not?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more