Exercise 9-2B Responsibility report Dexter Corporation divides its operations in

Question

Exercise 9-2B Responsibility report Dexter Corporation divides its operations into three regions: North American, European, and Asian. The following items appear in the company's responsibility report: European director's salary Revenues of the French branch Office expenses of the Japanese branch Corporation president's salary Asian director's salary Revenues of the Taiwanese branch Revenues of the British branch Office expenses of the French branch Revenues of the U.S. branch Administrative expenses of the corporate headquarters Office expenses of the Taiwanese branch Office expenses of the North American branch Revenues of the Japanese branch Revenues of the North American branch Office expenses of the British branch Office expenses of the U.S. branch American director's salary Required Which items should Dexter include in the responsibility report for the director of Asian operations?

Explanation / Answer

Only those items will be included over which the Asian Director has control and comes under his supervision. Therefore:

Office expenses of Japanese branch

Revenues of Taiwanese branch

Office expense of Taiwanese branch

Revenues of Japanese branch

Note: Corporation President's salary is out of Asian Director control. Also Asian Director's salary is also out of his own control, it is decided by his supervisor.

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