Explain the organization and control system of a car company, Managerial Accounting

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Explain the Organization and Control System of a Car Company?

A car company along with its three product lines. Line A is planned at the luxury segment, Line B at the upscale segment and the last Line C at the mass market segment. Each one of the product line is sold under a diverse brand name and by various distribution systems. Lines A, B and C are at present generated and marketed by Divisions A, B and C respectively. Few components are common to three divisions. Few of these common components may be sourced outwardly while others are manufactured internally. There is significant scope for technology and knowhow transfer crossways the divisions. Particularly, product innovations seem to originate in Division A and after that migrate to Division B and C. Though, process innovations seem to originate in Division C and afterward migrate to Divisions A and B.

In view of the above, explain as to how the company can be organized and controlled.


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