Chapter 9_blackboard - CHAPTER 9 9-1 Chapter Overview Responsibility Accounting Decentralization Responsibility Centers Performance Measurement Return

Chapter 9_blackboard - CHAPTER 9 9-1 Chapter Overview...

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CHAPTER 9 9-1
Chapter Overview Responsibility Accounting Decentralization Responsibility Centers Performance Measurement Return on Investment Residual Income Balanced Scorecard Responsibility Reports Guidelines Management by Exception Controllability
An accounting system that provides information . . . Responsibility Accounting Relating to the responsibilities of individual managers. To evaluate managers on controllable items. Accounting as the Language of Business
Decision Making is Pushed Down Supervisor Supervisor Middle Management Supervisor Supervisor Middle Management Top Management Decentralization often occurs as organizations continue to grow. Responsibility Accounting Decentralization The delegation of freedom to make decisions is called decentralization Continuum
Improves quality of decisions Encourages upper-level management to concentrate on strategic decisions Improves productivity Develops lower-level managers Improves performance evaluation Advantages Responsibility Accounting Decentralization
Successful implementation of responsibility accounting depends on clear lines of authority and clearly defined levels of responsibility. Vice President of Finance Department Manager Store Manager Vice President of Operations Vice President of Marketing President Board of Directors Responsibility Accounting