Managerial Finance & Accounting

posted by .

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?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Information Technology

    Choose one of the organizational departments of a business: accounting, finance, HR, or otherwise. What is the role of this department?
  2. business

    Choose one of the organizational departments, such as accounting, finance, HR, and so on of a business. What is the role of this department?
  3. Principles of Business

    Approximately how many people work in the: Finance Department?
  4. Business Mathematics

    In finance department of a certain company, there are twice as many men as women and in the marketing department there are ten more men than women. The number of women in both departments is the same and there are two more workers …
  5. a

    Susan Rojas is applying for a position in the marketing department of a local corporation. Although Greg Ellis is the director of this department, she has been instructed to send her resume and other documents to Jeff Cohen, manager …
  6. Math

    4 accounting majors, 2 economics majors and 3 marketing majors have an interview for5 different positions with a large company. Find the number of dfferent ways that 5 of these could be hired. 4 accounting majors must be hired first …
  7. English: Please help

    Serving the financial division of the government is the primary responsibility of the (1 point) Department of the Interior. Department of Commerce. *Department of the Treasury. Department of State The National Park Service is part …
  8. MGF 1106

    Four accounting majors, two economics majors, and three marketing majors have interviewed for five different managerial positions with a large company. Find the number of different ways that five of these people could be hired if the …
  9. Marketing

    I am creating a business which is an Ice cream shop. It asks me what types of promotion will I use for my business, and it lists 5 promotions. Personal selling, advertising, direct marketing, sales promotion, and public relations. …
  10. mgf liberal arts

    Four accounting majors, two economics majors, and three marketing majors have interviewed for five different managerial positions with a large company. Find the number of different ways that five of these people could be hired if the …

More Similar Questions