Puente Hills Toyota

. Purpose of Case This shell female genital organ be determination to impress discussions of a number of topics, including monetary responsibilitycenters, murder amount, dislodge pricing, and incentives. The position is an automobile dealership, a moundiness about which birthday suit students have roughly interest and understanding. And the setting isreal, so students basis benefit from auxiliary learning about the industry and business. Suggested appointment Question Evaluate the performance measurement and incentive systems use at Puente Hills Toyota. Whatchanges would you recommend, if any? Discussion The case illustrates clearly that financial responsibility centers exist in gravid variety. While textbooks make out the possible generic responsibility centers as cost centers, revenue enhancement centers, clear centers, and investment centers, this case shows well-nigh of the variance that can exist within these generic categories. The ordinary s ales bus is held accountable for net profit. Obviously, the dealership excessively keeps track of counterpoise sheet items, but the dealership commonplace managers incentives do not seem to number them. So is the frequent manager an investment center manager? Regarding performance measurement : The parts ar profit centers, but not each(prenominal) be argon allocated to them. They are to a greater extent like boorish profit centers. The salespeople are held accountable for gross profit on the deals they initiate, so each salesperson is in addition a comminuted profit center. The service advisors are stipendiary on commission, so each advisor is a revenue center. The service technicians, though, are paid for work accomplished. It is useful to discuss why some patently uncontrollable indirect costs are allocated to departments (see manifest 3). These allocations are mandated by Toyota, so that they can compare dealership departments on a common basis that treats eac h department more or less as a standalone bu! siness. Allocating the costs also gives the department managers information as to what services are...If you lack to feel a full essay, order it on our website: OrderCustomPaper.com

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