Business Finance
ACC 650 GCU Week 6 Responsibility Centers Designation for Waikiki Sands Hotel Departments Memo

aCC 650

Grand Canyon University


Question Description

I’m trying to study for my Business course and I need some help to understand this question.

Complete Problems 12-41 and 13-42 in the textbook.

Cases 12-41 and 13-42 should be prepared in a Word document with embedded Excel spreadsheets for relevant calculations and supporting schedules. You still need to post your Excel worksheet to show support for your calculations. Note, you must show your work in Excel, which includes providing the formulas in the cells, not just the summary value. You may not earn full points if you do not show your work in detail. Suggestion: To complete all parts of the problems correctly you should start each assignment with preparing an Excel workbook. The response for Problem 12-41 should be a minimum of 250 words.

Save your assignment as Lastname_FirstnameACC650_T6.docx.

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Final Answer


Running head: Responsibility Centers


Responsibility Centers
Student’s Name:
Instructor’s Name:

Responsibility Centers


TO: Waikiki Sands Hotel Manager
DATE: March 16th, 2019
SUBJECT: Responsibility Centers Designation for Waikiki Sands Hotel Departments.
A responsibility center refers to the various concepts and tools used by management
accountants to maintain the performance of people and departments to ensure consistency of the
organization's goals. Organizations have smaller units that are assigned particular responsibilities
to ensure that everyone is working towards the same corporate goals and objectives. In the
organization chart provided for Waikiki sands hotel, I would recommend the following
responsibility center designation (Potter, 2011).
The grounds and maintenance department which is responsible for landscaping, equipment
maintenance, buildings maintenance, and hotel security, is a service department that supports all
the other departments in Waikiki sands hotel. The director is therefore responsible for the costs
incurred in this department, such as paint costs. Therefore it's classified as a cost center. The
housekeeping and custodial department are responsible for hotel laundry and janitorial services.
It's also a service department that supports the other departments. The director is therefore
responsible for the costs incurred in this department, such as detergent costs. Therefore it's
classified as a cost center
The recreational services department is responsible for the operations in the saunas, video
arcades, swimming pools, and tennis courts. The director of this department is tasked with the

Responsibility Centers


responsibility to maximize sales with the lowest cost possible. Thus, an income center. The
hospitality department, which has the reception desk, guest services, and the bell staff subunits,
the director of this department is responsible for making sure the respective managers and captain
carry out their respective tasks in a way that it maximizes the revenues. It is, ther...

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