Learning Objectives:
- Understand the need to distinguish between cost centers and revenue centers
- Understand the complexities of profit centers and investment centers
- Develop an understanding of responsibility accounting
Class Preparation:
- Read & thoughtfully consider: North Country Auto Inc (Pages 201 – 207, Anthony on reserve in DLAM)
- Roles for Monday’s class
- Groups A and E are the new car department
- Groups B and F are the used car department
- Groups C and G are the parts department
- Groups D and H are the service department
- Prepare prior to class, as a group, two powerpoint slides from your perspective in the company
- Slide #1 = 5 key issues (be specific including detail). This will be presented in the first 30 minutes of class.
- Slide #2 = 5 recommendations each with a metric included, be prepared to explain how the you metric you suggest solves a problem
- No cover slide, place your section number and group number in the header
- NOTE: for your recommendations you are not restricted to your department or any of the existing systems or structures.
- DELIVERABLE: Email me, in PDF, your team’s two pages (power point saved as PDF) by 11 pm Sunday night. The teams are still being formed so, we will stay with existing groups for this class. Please include team and member names in the footer of your submission.
Class format:
Note 1: The format will be similar to C5 (Grand Jean) I will provide you with time lines and you will be involved with performing evaluations based upon the discussions you have observed. The evaluations will be completed in the last 10 minutes of class. Timeline below:
0-20 Compete task on Segmented Reporting
20 – 25 Set up for Presentation – North Country Auto
25 – 60 Group presents from table to other three groups (some discussion, if time permits)
60-80 individual task – applying the concepts
Note 2: You are expected to work on this as a group and everyone in your group is expected to be well-versed on your group’s arguments and rationale. Use the detail in the case to provide the basis for your arguments.
Note 3: Assign one person to be the lead on the presentation, this person should not be the person who lead the discussion for Grand Jean.
Complete Test #4 ==> Link