Detailed Instructions: In a business setting, we are often asked to write a memo to...

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Accounting

Detailed Instructions: In a business setting, we are often asked to write a memo to communicate with internal and external professionals. This assignment further advances your communications within an organization through the use of a memo.

Background:

As the senior accountant at Shoes Unlimited (SU), which manufactures seasonal and sport shoes for men, women, and children, your role with the budget process continues.

You are very pleased with how well the budget workshop held on October 4th went. Department managers came, were engaged, and asked a number of important questions.

Monica Wright, controller, advised department managers that you would follow up in a memo to address a few of the department managers questions.

Department managers asked:

  1. What is decentralization?
  2. What does the current organizational chart of the organization look like based on the entire organization? SU falls under the clothing division of the corporate headquarters, Fleet Holding Company. The only other division is sport attire.
  3. What responsibility center will the department managers be evaluated on? Provide details of this type of cost center.
  4. What are responsibility reports and the controllability concept?
  5. What is managerial performance measurement?

In consideration of the background, prepare a memo in a Word document to submit to the department managers with a cc to the controller.

  • An introduction paragraph advising department managers that your memo is addressing questions stemming from the budget workshop held on October 4th is needed.
  • In responding to questions, you will want to begin your discussion by explaining decentralization.
  • Department managers requested a copy of the current organizational chart. Please insert a diagram of the organizational chart. You can insert shapes in your memo, prepare in a Word table, or Excel with a copy and paste. A general flow description will work. Department managers represent the sales department, production department, planning development department, and the accounting department. The production department consists of the assembly department, ink and lettering department, and finishing department.
  • Then address the remaining questions outlined above.
  • End your memo with a closing paragraph.

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