Sallie's Cleaning Service Is a Large Commercial Cleaning Service with Two

Essay

Sallie's Cleaning service is a large commercial cleaning service with two divisions. The Office Division services businesses by cleaning their offices once a day during non-business hours. The Residential Division offers cleaning services to individuals in their homes, usually on a weekly basis, although other arrangements can be made.
Sallie's competition is very aggressive, especially for the Office Division. In the past the division managers have been evaluated primarily on sales volume. Although the divisions operate as independent businesses, the corporate president would like to increase the accountability of the division managers by making them also responsible for expenses. Since the company has no manufacturing operations and capital investments are minimal, the president does not intend to account for assets assigned to the divisions.