Centralization: The centralization refers to that system in which the main part of an organization is responsible to make the decisions. This means the whole responsibility lies only with the main unit of an organization. Decentralization: The decentralization means that the lower levels of an organization are given freedom to take their decisions. This means the responsibility in an organization is shared or is given to the smaller and subsidiary levels. To explain: Whether the Company BP has a centralized or a decentralized structure.

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Answer 1

Question

Chapter 22, Problem 22.18E

A.

To determine

Centralization:

The centralization refers to that system in which the main part of an organization is responsible to make the decisions. This means the whole responsibility lies only with the main unit of an organization.

Decentralization:

The decentralization means that the lower levels of an organization are given freedom to take their decisions. This means the responsibility in an organization is shared or is given to the smaller and subsidiary levels.

To explain: Whether the Company BP has a centralized or a decentralized structure.

B.

To determine

To explain: Whether the Company EI has a centralized or a decentralized structure and the costs and benefits of that type of structure.

C.

To determine

To explain: The hotels in each chain can be considered as the cost centers, revenue centers, profit centers and investment centers and the way in which the evaluation of property managers can tie to it.

D.

To determine

To explain: The steps the management of HH makes to improve goal congruence between property managers and the larger company.

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Palladium, Incorporated recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. Cost of Goods Sold $ 67,000 Work-in-Process Inventory, Beginning 11,300 Work-in-Process Inventory, Ending 9,400 Selling and Administrative Expense 16,000 Finished Goods Inventory, Ending 16,100 Finished Goods Inventory, Beginning ?question mark Direct Materials Used ?question mark Factory Overhead Applied 12,400 Operating Income 14,220 Direct Materials Inventory, Beginning 11,180 Direct Materials Inventory, Ending 6,140 Cost of Goods Manufactured 61,880 Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The Chief Financial Officer of Palladium, Incorporated has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount in the finished goods inventory at the beginning of the year?

Which of the following statements is incorrect regarding manufacturing overhead? Multiple Choice Manufacturing overhead includes both fixed and variable costs. Manufacturing overhead is an indirect cost to units or products. Actual overhead costs are used in the cost accounting process. Actual overhead costs tend to remain relatively constant over various output levels.

Palladium, Incorporated recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records. Cost of Goods Sold $ 72,500 Work-in-Process Inventory, Beginning 13,500 Work-in-Process Inventory, Ending 10,500 Selling and Administrative Expense 18,750 Finished Goods Inventory, Ending 19,125 Finished Goods Inventory, Beginning ?question mark Direct Materials Used ?question mark Factory Overhead Applied 13,500 Operating Income 14,825 Direct Materials Inventory, Beginning 11,675 Direct Materials Inventory, Ending 6,525 Cost of Goods Manufactured 67,050 Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The Chief Financial Officer of Palladium, Incorporated has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount of direct materials purchased?

Answer 2

Question

Chapter 22, Problem 22.18E

A.

To determine

Centralization:

The centralization refers to that system in which the main part of an organization is responsible to make the decisions. This means the whole responsibility lies only with the main unit of an organization.

Decentralization:

The decentralization means that the lower levels of an organization are given freedom to take their decisions. This means the responsibility in an organization is shared or is given to the smaller and subsidiary levels.

To explain: Whether the Company BP has a centralized or a decentralized structure.

B.

To determine

To explain: Whether the Company EI has a centralized or a decentralized structure and the costs and benefits of that type of structure.

C.

To determine

To explain: The hotels in each chain can be considered as the cost centers, revenue centers, profit centers and investment centers and the way in which the evaluation of property managers can tie to it.

D.

To determine

To explain: The steps the management of HH makes to improve goal congruence between property managers and the larger company.

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Answer 3

Question

Chapter 22, Problem 22.18E

A.

To determine

Centralization:

The centralization refers to that system in which the main part of an organization is responsible to make the decisions. This means the whole responsibility lies only with the main unit of an organization.

Decentralization:

The decentralization means that the lower levels of an organization are given freedom to take their decisions. This means the responsibility in an organization is shared or is given to the smaller and subsidiary levels.

To explain: Whether the Company BP has a centralized or a decentralized structure.

B.

To determine

To explain: Whether the Company EI has a centralized or a decentralized structure and the costs and benefits of that type of structure.

C.

To determine

To explain: The hotels in each chain can be considered as the cost centers, revenue centers, profit centers and investment centers and the way in which the evaluation of property managers can tie to it.

D.

To determine

To explain: The steps the management of HH makes to improve goal congruence between property managers and the larger company.

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Answer 4

Question

Chapter 22, Problem 22.18E

A.

To determine

Centralization:

The centralization refers to that system in which the main part of an organization is responsible to make the decisions. This means the whole responsibility lies only with the main unit of an organization.

Decentralization:

The decentralization means that the lower levels of an organization are given freedom to take their decisions. This means the responsibility in an organization is shared or is given to the smaller and subsidiary levels.

To explain: Whether the Company BP has a centralized or a decentralized structure.

B.

To determine

To explain: Whether the Company EI has a centralized or a decentralized structure and the costs and benefits of that type of structure.

C.

To determine

To explain: The hotels in each chain can be considered as the cost centers, revenue centers, profit centers and investment centers and the way in which the evaluation of property managers can tie to it.

D.

To determine

To explain: The steps the management of HH makes to improve goal congruence between property managers and the larger company.

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Answer 5

Chapter 22, Problem 22.18E

A.

To determine

Centralization:

The centralization refers to that system in which the main part of an organization is responsible to make the decisions. This means the whole responsibility lies only with the main unit of an organization.

Decentralization:

The decentralization means that the lower levels of an organization are given freedom to take their decisions. This means the responsibility in an organization is shared or is given to the smaller and subsidiary levels.

To explain: Whether the Company BP has a centralized or a decentralized structure.

B.

To determine

To explain: Whether the Company EI has a centralized or a decentralized structure and the costs and benefits of that type of structure.

C.

To determine

To explain: The hotels in each chain can be considered as the cost centers, revenue centers, profit centers and investment centers and the way in which the evaluation of property managers can tie to it.

D.

To determine

To explain: The steps the management of HH makes to improve goal congruence between property managers and the larger company.

Answer 6

Chapter 22, Problem 22.18E

A.

To determine

Centralization:

The centralization refers to that system in which the main part of an organization is responsible to make the decisions. This means the whole responsibility lies only with the main unit of an organization.

Decentralization:

The decentralization means that the lower levels of an organization are given freedom to take their decisions. This means the responsibility in an organization is shared or is given to the smaller and subsidiary levels.

To explain: Whether the Company BP has a centralized or a decentralized structure.

Answer 7

Chapter 22, Problem 22.18E

A.

To determine

Centralization:

The centralization refers to that system in which the main part of an organization is responsible to make the decisions. This means the whole responsibility lies only with the main unit of an organization.

Decentralization:

The decentralization means that the lower levels of an organization are given freedom to take their decisions. This means the responsibility in an organization is shared or is given to the smaller and subsidiary levels.

To explain: Whether the Company BP has a centralized or a decentralized structure.

Answer 8

B.

To determine

To explain: Whether the Company EI has a centralized or a decentralized structure and the costs and benefits of that type of structure.

Answer 9

B.

To determine

To explain: Whether the Company EI has a centralized or a decentralized structure and the costs and benefits of that type of structure.

Answer 10

C.

To determine

To explain: The hotels in each chain can be considered as the cost centers, revenue centers, profit centers and investment centers and the way in which the evaluation of property managers can tie to it.

Answer 11

C.

To determine

To explain: The hotels in each chain can be considered as the cost centers, revenue centers, profit centers and investment centers and the way in which the evaluation of property managers can tie to it.

Answer 12

D.

To determine

To explain: The steps the management of HH makes to improve goal congruence between property managers and the larger company.

Answer 13

D.

To determine

To explain: The steps the management of HH makes to improve goal congruence between property managers and the larger company.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 22 - Prob. 22.1Q Ch. 22 - Describe three criteria you would use to evaluate...Ch. 22 - What is the relationship among motivation, goal...Ch. 22 - Name three benefits and two costs of...Ch. 22 - Organizations typically adopt a consistent...Ch. 22 - Transfer pricing is confined to profit centers. Do...Ch. 22 - What are the three methods for determining...Ch. 22 - What properties should transfer-pricing systems...Ch. 22 - All transfer-pricing methods give the same...Ch. 22 - Prob. 22.10Q

Solution Summary: The author explains that the company BP has a centralized or decentralized structure.

To explain: Whether the Company EI has a centralized or a decentralized structure and the costs and benefits of that type of structure.

To explain: The hotels in each chain can be considered as the cost centers, revenue centers, profit centers and investment centers and the way in which the evaluation of property managers can tie to it.

To explain: The steps the management of HH makes to improve goal congruence between property managers and the larger company.

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Chapter 22 Solutions