shown on responsibility center reports to indicate their magnitude. Problem 22-2: Golub Company a. The sales manager's complaint is justified. Product A has the largest net sales of the three products and under the allocation method used in the first year would, therefore, be charged the largest amount for advertising expense. However, the actual amount of advertising expense incurred on behalf of Product A, and hence the responsibility of the manager of Product A, is smaller than that incurred on behalf…
Words 5866 - Pages 24