You have been hired as a Cost Accountant by Sundial, Inc., which produces sunglasses. Your duties includedeveloping cost standards for materials and labor, designing and implementing cost accounting systems, definingvarious product and operational costs, analyzing production costs and recommending changes. When the trialperiod is over, you will have a performance review to demonstrate the completed tasks and gained knowledge.In order to achieve the purpose of delegation, controlling tasks, and improving decision-making, Sundial, Inc.decides to decentralize and introduce a Management Control System. As a new assignment, your boss asks you toprepare a proposal for Responsibility Accounting, which implies creation of four decentralized units (responsibilitycenters).The organizational structure of Sundial, Inc. looks as follows:DivisionsVice PresidentSunglassesProduct ManagerSunglassesPlant ManagerFinanceCFOSundial, Inc.President and CEOSunglassesDistribution ManagerLegal GeneralCounselPersonnelVice PresidentDesign the project to implement the decentralized structure in Sundial, Inc. that includes creatingresponsibility centers. Identify the divisions that are going to represent each of the four types of theresponsibility centers. Explain the functions of each of the responsibility centers and how they are goingto be exercised by the divisions.

Responsibility center means the divisions that are held responsible to attain the desired profit…

Answered: Design the project to implement the…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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