Chapter 23 - 23 Performance Evaluation for Decentralized Operations Student Version 11-1 23 1 Describe the advantages and disadvantages of decentralized

Chapter 23 - 23 Performance Evaluation for Decentralized...

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11-1 23-1 23 Performance Evaluation for Decentralized Operations Student Version
11-2 23-2 1Describe the advantages and disadvantages of decentralized operations. 23-2
11-3 23-3 In a decentralized company, managers of separate divisions or units are delegated operating responsibility. The division (unit) managers are responsible for planning and controlling the operations of their divisions. Decentralized Operations 1
11-4 23-4 Responsibility accounting is the process of measuring and reporting operating data by responsibility centers. Three common types of responsibility centers are— Cost centers Profit centers Investment centers 1
11-5 23-5 2Prepare a responsibility accounting report for a cost center. 23-5
11-6 23-6 To Vice President’s Budget Performance Report from Supervisor, Department 1, Plant A’s Budget Performance Report (continued) Responsibility Accounting Reports for Cost Centers (continued) Exhibit 3 2
11-7 23-7 To Manager, Plant A’s Budget Performance Report Responsibility Accounting Reports for Cost Centers (concluded) Exhibit 3 2
11-8 23-8 3 Prepare responsibility accounting reports for a profit center.
11-9 23-9 In a profit center , the unit manager has the responsibility and the authority to make decisions that affect both costs and revenues (and thus profits). Profit Center 3
11-10 23-10 Service Department Charges

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