10 Nov Different types of responsibility centersFirst Nat
Different types of responsibility centersFirst National Bank is a large municipal bank with several branch offices. The bank’s computer department handles all data processing for bank operations. In addition, the bank sells the computer department’s expertise in systems development and excess machine time to several small business firms, serving them as a service bureau. The bank currently treats the computer department as a cost center. The manager of the computer department prepares a cost budget annually for senior bank officials to approve. Monthly operating reports compare actual and budgeted expenses. Revenues from the department’s service bureau activities are treated as other income by the bank and are not reflected on the computer department’s operating reports. The costs of servicing these clients are included in the computer department reports, however. The manager of the computer department has proposed that bank management convert the computer department to a profit or investment center.Requireda. Describe the characteristics that differentiate a cost center, a profit center, and an investment center from each other.b. Would the manager of the computer department be likely to conduct the operations of the department differently if the department were classified as a profit center or an investment center rather than as a cost center? Explain.
Order an Excellent Paper with Bonpapers.com Writing Service
Bonpaper is a Custom Research Paper Writing service based in USA that is Available 24/7 to cater your needs. We have huge experience of writing essays about every possible topic. We have access to the online libraries, peer-journals, and news sites which makes it possible to gather enough data about the topic.
We provide the plagiarism-free and grammatically perfect essay writing service to our clients. We have written hundreds of essays so far and our clients have gained excellent results as well.
Need Assignment Help?