11_Overheads - Objectives for today Responsibility centers...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC 333 (Farrell), Fall 2011, Class 11 1 ACC 333 (Far el ) Fal 2011, Class 11 1 Objectives for today Responsibility centers and accounting – What they are, why use them, how to design them – Three types of responsibility centers – A closer look at performance measures for investment centers – Criticisms of responsibility centers Strategic performance measurement systems as an answer to the criticisms – What they are, and how to design them – “Balanced Scorecards” as an example ACC 333 (Far el ) Fal 2011, Class 11 2 What are responsibility centers? What's a responsibility center? – A segment of a business whose manager is accountable for specified sets of activities – Can be organized in any logical way that’s consistent with how the firm is managed • e.g., product line, type of customer, geographic area Sounds like?. .. Rule of the game #1! ACC 333 (Far el ) Fal 2011, Class 11 3 What are responsibility centers? (continued) What's responsibility accounting? – A system that measures the results of each responsibility center, and compares the results with measures of expected outcomes (i.e., an operating budget ) Sounds like?. .. Rule of the game #2!
Background image of page 1

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

View Full DocumentRight Arrow Icon
ACC 333 (Farrell), Fall 2011, Class 11 2 ACC 333 (Far el ) Fal 2011, Class 11 4 Why use responsibility centers? (continued) What are the benefits of using responsibility centers? – Decision rights are close to specific knowledge • Managers have best local information, can respond to opportunities and threats more timely • Upper management can’t do everything (bounded rationality) – Inefficiencies are exposed with disaggregation • Measures more facets of a company's operations – Top management can focus on strategy and vision – Trains and motivates local managers to move top upper management ACC 333 (Far el ) Fal 2011, Class 11 5 Why use responsibility centers? (continued)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/19/2012 for the course ACCACC 333 taught by Professor Anne during the Fall '11 term at Miami University.

Page1 / 7

11_Overheads - Objectives for today Responsibility centers...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online