Design the project to implement the decentralized structure in Sundial, Inc. that includes creating responsibility centers. Identify the divisions that are going to represent each of the four types of the responsibility centers. Explain the functions of each of the responsibility centers and how they are going to be exercised by the divisions.
Design the project to implement the decentralized structure in Sundial, Inc. that includes creating responsibility centers. Identify the divisions that are going to represent each of the four types of the responsibility centers. Explain the functions of each of the responsibility centers and how they are going to be exercised by the divisions.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:You have been hired as a Cost Accountant by Sundial, Inc., which produces sunglasses. Your duties include
developing cost standards for materials and labor, designing and implementing cost accounting systems, defining
various product and operational costs, analyzing production costs and recommending changes. When the trial
period is over, you will have a performance review to demonstrate the completed tasks and gained knowledge.
In order to achieve the purpose of delegation, controlling tasks, and improving decision-making, Sundial, Inc.
decides to decentralize and introduce a Management Control System. As a new assignment, your boss asks you to
prepare a proposal for Responsibility Accounting, which implies creation of four decentralized units (responsibility
centers).
The organizational structure of Sundial, Inc. looks as follows:
Divisions
Vice President
Sunglasses
Product Manager
Sunglasses
Plant Manager
Finance
CFO
Sundial, Inc.
President and CEO
Sunglasses
Distribution Manager
Legal General
Counsel
Personnel
Vice President
Design the project to implement the decentralized structure in Sundial, Inc. that includes creating
responsibility centers. Identify the divisions that are going to represent each of the four types of the
responsibility centers. Explain the functions of each of the responsibility centers and how they are going
to be exercised by the divisions.
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