{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Module 22 - Module22 StandardCostsand PerformanceReports...

Info icon This preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
© Cambridge Business Publishers, 2009 © Cambridge Business Publishers, 2009 Click to edit Master subtitle style Module 22 Standard Costs and  Performance Reports
Image of page 1

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

View Full Document Right Arrow Icon
© Cambridge Business Publishers, 2009   © Cambridge Business  Publishers, 2009 Responsibility Accounting n The structuring of performance reports to  emphasize the factors controlled by units or  managers n Should exclude non-controllable costs n Most include comparisons of actual results  with budgeted amounts n Customized to emphasize activities of each  organizational unit or value chain element
Image of page 2
© Cambridge Business Publishers, 2009   © Cambridge Business  Publishers, 2009 Responsibility Accounting and  Organization Structure § Organization structure is the arrangement of  lines of responsibility within the organization § Alternative organization structures § Functional-based such as marketing vs. production  vs. research, etc. § Product-based § Geographically-based § Service-based § Customer-based
Image of page 3

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

View Full Document Right Arrow Icon
© Cambridge Business Publishers, 2009   © Cambridge Business  Publishers, 2009 {66C094F2-9EA5-49DB-8138-9CB51E1E665A} Cost Center {FECCB18A-B6AD-4EBF-85A5-35C5C4B1485D} Revenue Center {C7318B6E-212C-4473-A804-6E28DA636251} Profit Center {9CC97023-EE92-4F0D-9DD3-0514468F3AF7} nvestment Center Types of Responsibility Centers Less  responsibility More  responsibility
Image of page 4
© Cambridge Business Publishers, 2009   © Cambridge Business  Publishers, 2009 Cost Center § A responsibility center whose manager is  responsible only for managing costs § No revenue responsibility § Examples in a manufacturing plant § Tooling department § Assembly activities § Examples in a retail store § Inventory control function § Maintenance department Examples in a university Production stage
Image of page 5

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

View Full Document Right Arrow Icon
© Cambridge Business Publishers, 2009   © Cambridge Business  Publishers, 2009 Revenue Center § A responsibility center whose manager is  responsible for the generation of sales  revenues § Sometimes assigned responsibility for  controllable costs incurred in generating 
Image of page 6
© Cambridge Business Publishers, 2009   © Cambridge Business  Publishers, 2009 Profit Center n A responsibility center whose manager is  responsible for revenues, costs, and resulting  profits n Most frequently a segment of an company such  as a n Product line n Marketing territory n Store
Image of page 7

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

View Full Document Right Arrow Icon
© Cambridge Business Publishers, 2009   © Cambridge Business  Publishers, 2009 Investment Center § A responsibility center whose manager is  responsible for the relationship between its  profits and the total assets invested in the  center § High degree of organization autonomy § Evaluated on the basis of how well  controllable resources are used to earn a 
Image of page 8
© Cambridge Business Publishers, 2009   © Cambridge Business  Publishers, 2009 Static and Flexible Budgets n Based on original 
Image of page 9

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

View Full Document Right Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern