Identify the items that are likely considered to be controlled by the New Car division.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Car City is divided into three divisions: new car sales (NCS), used car sales (UCS), and parts and service (PAS). Each division is supervised by a division manager. The three division managers report to the general manager. Each division is subdivided into different departments managed by a department manager. For example, the PAS division has a parts department manager and a service department manager and NCS has a department manager for auto sales and a department manager for truck sales. The following items were contained in the company's most recent responsibility report:

 
a Allocated utility cost for NCS division
b Cost to rent vacant lot for storage of new vehicles
c Parts revenue for the PAS division
d

Parts shipping/delivery costs

e

Salary of the gerneral manager

f Salary of the Parts department manager
g Salary of the PAS division manager
h Salary of the UCS division manger
I Sales commisions of UCS sales personnel
J Service revenue for the PAS division
k Training costs for mechanics
L

Warranty repair cost

 

 

Required:

Identify the items that are likely considered to be controlled by the New Car division.

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