Chapter 23 - 11-123-123Performance Evaluation for...

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Unformatted text preview: 11-123-123Performance Evaluation for Decentralized OperationsStudent Version11-223-21Describe the advantages and disadvantages of decentralized operations.23-211-323-3In a decentralizedcompany, 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 Operations111-423-4Responsibility accounting is the process of measuring and reporting operating data by responsibility centers. Three common types of responsibility centers areCost centersProfit centersInvestment centers111-523-52Prepare a responsibility accounting report for a cost center.23-511-623-6To Vice Presidents Budget Performance Reportfrom Supervisor, Department 1, Plant As Budget Performance Report(continued)Responsibility Accounting Reports for Cost Centers(continued)Exhibit 3211-723-7To Manager, Plant As Budget Performance ReportResponsibility Accounting Reports for Cost Centers(concluded)Exhibit 3211-823-83Prepare responsibility accounting reports for a profit center.23-811-923-9In 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 Center311-1023-10Service Department ChargesServices provided by internal centralized service departmentsare often more efficient than services contracted with outside providers. An internal service cost is called a service department charge....
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This note was uploaded on 01/31/2011 for the course BUS 101 taught by Professor Pernia during the Spring '10 term at Essex County College.

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Chapter 23 - 11-123-123Performance Evaluation for...

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