Tuesday
July 29, 2014

Homework Help: Managerial Finance & Accounting

Posted by Anonymous on Tuesday, October 12, 2010 at 1:53am.

P10-9 Performance Evaluations (M324) - Objs. 2, 5

The Promotion and Advertising Department at Jefferson Corporation coordinates point of purchase promotions for its distributors. Employees of this department are graphic arts or marketing majors who develop campaign materials and conduct market research. The department does not collect any revenue for these services. The department manager is evaluated based on the department's ability to operate within its budget. For the last several years, the manager has had to curtail many promotional programs a month before year-end in order to stay within budget.
Sales personnel, marketing representatives, and customers frequently complain when these services are terminated. Dan Beck, the department manager, told a colleague, "I hate taking all this heat every year. But I just can't afford to blow the budget." He also noted that "soon the new budget will be out, and I can give everyone what they want!"

Required

A. What type of responsibility center is the Promotion and Advertising Department?

The Promotion and Advertising Departments are both cost centers.

B. How is the department currently being evaluated? What are the important elements on which the department should be evaluated?

The department is currently being evaluated on its ability to control costs.

C. What appear to be the reasons for the department's budget problems? What implications does this have for the company?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Principles of Business - Approximately how many people work in the: Finance ...
business - an attempt to minimize the problem of wage-rate compression, ...
managerial economics - An article in the Wall Street Journal discusses a trend ...
Marketing - What are key sales promotion techniques examples that marketing ...
Finance - 1) A typical use of managerial accounting is to: a) help investors and...
Finance - 1) A typical use of managerial accounting is to: a) help investors and...
Statistics - The notion of statistical significance is frequently used in ...
English: Please help - Serving the financial division of the government is the ...
Economics - Please check my work! Thanks! 1. The employees of Abs “R” Us, which ...
Accounting - Your department’s accounting software is extremely outdated and you...

Search
Members