Question

MY EXPENSE CATEGORY IS RENT! THANK YOU!

Use your Group's Announcements area to discuss your solution to part 1. Assume that of the 16 auditoriums, ten of them each have 150 seats, and the other six each have 400 seats.

In your Group's Discussion forum, individually complete part 2; each student should take a different expense category (heat/air conditioning, rent, insurance, or maintenance), and propose how this expense category should be allocated across (a) the various-sized auditoriums and (b) the concessions operations. For full credit, your proposal should be clear and detailed.

IMPORTANT INSTRUCTIONS:

1. Navigate to your Group Homepage by hovering your cursor over our course at the Courses dropdown menu at the top of this page. Use your Group's Announcement tool to discuss part 1, and to decide among your group-mates who will tackle which expense in part 2.

2. Once your roles are agreed, post your solution for your chosen expense category (heat/air conditioning, rent, insurance, or maintenance) in your group's Discussion forum.

BTN 24-8

Visit a local movie theater and check out both its concession area and its showing areas. The manager of a theater must confront questions such as:

How much return do we earn on concessions?

What types of movies generate the greatest sales?

What types of movies generate the greatest net income?

Required

Assume that you are the new accounting manager for a 16-screen movie theater (ten of the auditoriums have 150 seats each; the other six auditoriums each have 400 seats). You are to set up a responsibility accounting reporting framework for the theater.

Recommend how to segment the different departments of a movie theater for responsibility reporting.

Propose an expense allocation system for heat/air conditioning, rent, insurance, and maintenance costs of the theater.

Answer 1