Responsibility Center -111 Profit Centers Superior Foods Corporation provides an example of different types of accountability in an organization. For example a company can reorganize a product to demand fewer parts reduce production costs and the cost of retaining the product after the purchase. Cost of transport: inventory costs Examples: Insurance inventory tax advance payment option cost for capital tied up and storage. The activity-based liability system assigns responsibility for processes and uses both financial and non-financial performance indicators. Actually Compared to Standard Financial Promotion Bonus Individual rewards are based on financial performance. Element of a Functional Responsibility System Verifiable Costs Financial Performance Performance is measured. Element of a Functional Responsibility System System Organizational Unit Responsible Person Responsible is Defined Operational Performance Financial Performance Unit Budgets Standard Cost Savings are determined. Examples include receiving and checking incoming parts moving materials freight products new product testing product maintenance and equipment setup.
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