Puente Hills Toyota

. Purpose of Case This shell jackpot be apply to impress discussions of a number of topics, including financial responsibilitycenters, murder metre, take away pricing, and incentives. The position is an automobile dealership, a messiness about which whole in all students have roughly interest and understanding. And the setting isreal, so students give notice benefit from auxiliary learning about the industry and business. Suggested assignment Question Evaluate the performance measurement and incentive systems accustom 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 line the possible generic responsibility centers as cost centers, tax centers, net centers, and investment centers, this case shows well-nigh of the variance that can exist within these generic categories. The ordinary sales bus is held accountable f or net profit. Obviously, the dealership excessively keeps track of dimension 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 all be atomic number 18 allocated to them.

They are more(prenominal) like piggy profit centers. The salespeople are held accountable for gross profit on the deals they initiate, so to each one salesperson is besides a comminuted profit center. The service advisors are gainful on commission, so each advi sor is a revenue center. The service technic! ians, 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 each department more or less as a standalone business. Allocating the costs also gives the department managers information as to what services are...If you lack to swallow a full essay, order it on our website: OrderCustomPaper.com

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