Identify the type of responsibility center


Response to the following problem:

Grandpa Joe's Cookie Company sells homemade cookies made with organic ingredients. His sales are strictly Web based. The business is taking off more than Grandpa Joe ever expected, with orders coming from across the country from both consumers and corporate event planners. Grandpa decides to decentralize and hires a full-time baker who will manage production and product cost and a Web designer/sales manager who will focus on increasing sales through the Web site. Grandpa Joe can no longer handle the business on his own, so he hires a business manager to work with the other employees to ensure the company is best utilizing its assets to produce profit. Grandpa will then have time to focus on new product development.

Requirement

1. Now that Grandpa Joe's Cookie Company has decentralized, identify the type of responsibility center that each manager is managing.

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Managerial Accounting: Identify the type of responsibility center
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