Ch 12 and 13

Managerial Accounting: Creating Value in a Dynamic Business Environment

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Ch 12 Responsibility Accounting, Quality control and Environmental Cost Management 1. Goal Congruence 2. Responsibility Accounting System 3. Types of Responsibility Centers Cost Center Revenue Center Profit Center Investment Center 4. Flexible Budgets 5. Activity Based Responsibility Accounting System Is activity NECESSARY? Does activity ADD VALUE? Is there ROOM FOR IMPROVEMENT? 6. Cost Pool Cost Object Cost allocation: Assign all costs to subunits using cost allocation bases or cost drivers 7. 3 Features of a Segmented Income Statement Contribution margin format Controllable vs. Uncontrollable costs Segment income (company as a whole and individual segment results) 8. Customer Profitability 9. Meaning of Product Quality Quality of Design, Conformance and Grade 10. Product Quality Costs Prevention: costs of preventing defects Appraisal: costs of determining the existence of defects 1
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Internal Failure: cost of repairing defects prior to delivery External Failure: post delivery cost related to selling defective product
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This document was uploaded on 06/22/2010.

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Ch 12 and 13 - Ch 12 Responsibility Accounting Quality...

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