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(Solution) - Consider the Home Depot 10 Year Summary of Financial and Operating

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Consider the Home Depot "10-Year Summary of Financial and Operating Results" shown at the end of Appendix A. Assume that Home Depot designates each of the countries in which it operates as an investment center (i.e., the United States with 1,976, Canada with 179, Mexico with 79, and China with 10 stores, respectively). In addition, assume each individual store is a profit center.
Within each store, assume that inventory and janitorial are designated as cost centers. For each type of responsibility center described choose as many measures from those listed in the 10-Year Summary that seem appropriate to help evaluate the given center. Explain why the measures you have chosen are appropriate for the type of responsibility center (investment-country level, profit-store level, or cost center sub store level).


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This question was answered on: Jul 11, 2017

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