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Managerial Accounting
, 2002 Edition
Belverd E. Needles, Jr., DePaul University
Marian Powers, Northwestern University
Susan Crosson, Santa Fe Community College
Toys'R'Us Annual Report Activities
Chapter 14
Internal Service Costs
Refer to the Toys "R" Us Annual Report and Chapter 14 of your textbook to answer the following questions:
1. What responsibility centers might exist within the Toys "R" Us organization?
Which of these would be considered revenue centers?
Which of these would be considered service centers?
Was Toys "R" Us profitable in the year ended February 3, 2001?
Which method(s) of service cost allocation do you think Toys "R" Us might use? Why?
Either print out your answers for submission or email them to your instructor.
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