Hi john sir, how r u? pray to God for your good health.
Q# Five retail outlets generate the sales revenue of a company. The administration department at head office purchases all of the paperwork produced by the retail outlets.
What is the manager of the administration department responsible for?
A. Cost only
b. sales and costs
c. sales and profits
d. profits only
John sir what is this statement that 'head office purchases all paperwork' I dont know what is the logic for buying paper work and does company sales its paper work? is it not for evidences?
Ask the Tutor ACCA MA
Responsibility accounting
12y ago#1It is a bit strange.
However, the admin department will need reports from the retail outlets (this is what they mean by the paperwork). It seems that the retail outlets are charging admin for them - it is therefore a cost to admin, and admin is responsible for costs only.
Really it is strange. john sir is it possible that admin requires report and that is being charged for that? wha is the logic?
12y ago#3Certainly the admin department will require reports (such as what are the sales in each division).
The logic behind charging them is to try and make each division of the company more efficient. If admin are being charged for reports then they will make sure that they only ask for essential ones. If they are not being charged then they might ask for all sorts of silly reports, which would be wasting money for the business as a whole.
Thanx alot john sir, i got it. And i am feeling lucky that i am on forum and you replied me. I wish i meet you john sir. Thanx again
12y ago#5You are welcome :-)
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