chapter 12

chapter 12 - Segment Reporting and Decentralization Chapter...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 12 Page 1 Accounting 2102 Segment Reporting and Decentralization Chapter Twelve
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 12 Page 2 Accounting 2102 Responsibility Accounting . . . Centralized and Decentralized Operations    Who makes planning and operational decisions? Centralized Operations Top management (top down budgeting) Decentralized Operations Varying levels of mangers and workers (part bud.) What would necessitate decentralized operations? Geographic diversity, product diversity, customer diversity What are the advantages/disadvantages? Frees up top mgmt People in the know make decisions Inc motivation
Background image of page 2
Chapter 12 Page 3 Accounting 2102 Responsibility Centers . . . accountability responsible for . . . performance evaluation tools . . . example . . . Cost Center cost BVA (performance report) HR Acct Mktng legal Revenue Center revenue Same as above Travel agent, ins agent Profit Center Revenue, cost Same Sales dept for the summit agency, dealership Investment Center Rev, cost, assets Same, return on investment, residual income Summit agency, GM
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Accounting 2102 segment . . . any part or activity of an organization about which a manager seeks cost, revenue, or profit data characteristics of segmented reporting (performance report) contribution income format traceable fixed costs should be separated from common fixed costs to enable the calculation of a segment margin Decentralization and Segment Reporting the traceable fixed costs of one segment may be a common fixed cost of another segment common costs should not be arbitrarily allocated to segments based on the rationale that “someone has to cover the common costs” . . . may make a profitable business segment appear to be
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 13

chapter 12 - Segment Reporting and Decentralization Chapter...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online