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FOUR PRIMARY FINANCIAL STATEMENTS

SUPERIOR LIVING, INC IS A PRIVATE DOMESTIC PRIVATE MANUFACTURER OF HOME FURNITURE WHICH RUNS 3 DIVISIONS:
1. SALES
2. MARKETING
3. MANUFACTURING PERSONNEL

LIST THE ADVANTAGES OF COST VERSUS REVENUE OF THE LUXURY DEPT VERSUS THE OTHER DIVISIONS: SALES, MARKETING, AND MANUFACTURING PERSONNEL/AND ITS 6 PRODUCT LINES:
1. OUTDOOR PATIO
2. LUXURY
3. DURABLE RENTAL
4. CHILDREN FURNITURE
5. RARE WOOD
6. SPACE SAVER.

LIST THE FOUR PRIMARY FINANCIAL STATEMENTS USED FOR A PRIVATE DOMESTIC U.S. MANUFACTURER (SUPERIOR LIVING, INC) WHO TARGETS US CONSUMERS AGES 21 - 54.

WHAT DOES EACH FINANCIAL STATEMENT MEASURE

DISCUSS IN DETAIL THE LINKAGE BETWEEN THE FOUR PRIMARY FINANCIAL STATEMENTS

EXPLAIN THE PERFORMANCE METRICS

EXPLAIN WHAT EACH OF THESE FOUR PRIMARY FINANCIAL STATEMENTS TELLS US

EXPLAIN HOW DATA IS COLLECTED TO DEVELOP FINANCIAL STATEMENTS

LIST WHY CERTAIN INFO/KIND OF DATA IS ON EACH STATEMENT AND WHY WOULD THAT PARTICULAR INFO WARRANT BEING

COMPARE THE MARKET FOR FURNITURE TARGETED FOR AGES 21 - 54 IN THE US AND EXPLAIN WHY

HOW SHOULD THE IT AND /ON OTHER ASSIGN

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SUPERIOR LIVING, INC IS A PRIVATE DOMESTIC PRIVATE MANUFACTURER OF HOME FURNITURE WHICH RUNS 3 DIVISIONS:
1. SALES
2. MARKETING
3. MANUFACTURING PERSONNEL

LIST THE ADVANTAGES OF COST VERSUS REVENUE OF THE LUXURY DEPT VERSUS THE OTHER DIVISIONS: SALES, MARKETING, AND MANUFACTURING PERSONNEL/AND ITS 6 PRODUCT LINES:
1. OUTDOOR PATIO
2. LUXURY
3. DURABLE RENTAL
4. CHILDREN FURNITURE
5. RARE WOOD
6. SPACE SAVER.
The principle of controllability applies to responsibility accounting. The presumption underlying controllability is that every dollar earned or dollar spent is under the control of, and can be traced to, at least one manager.
Responsibility accounting represents decentralization of a business enterprise. It is comparable to a political policy of shifting power from the federal government to state or even municipal government.

RESPONSIBILITY CENTER IN AN ORGANISATION
1. Cost centers are those in which the manager and the center employees have control over costs, but not revenues or the level of investment.
2. Revenue center: The center manager has control over revenues, but not costs or the level of investment, in a revenue center
3. Profit center: Here the control is over both revenue and expenses.

4. Investment center: Finally, an investment center is one in which the manager controls costs, revenue, and the level of investment. Level of investment represents expenditure on space, equipment, and other capital resources.
The metrics used to evaluate performance vary for each type of responsibility center. For a cost center, price variance is assessed. Price variance is the difference between the average price paid for a certain supply and the budgeted amount. The assumption is that the purchasing manager, through management of factors such as inventory and purchasing discounts, exerts some control over average price paid.
In a revenue ...

Solution Summary

This discusses the concept of financial statements in detail

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