TAILIEUCHUNG - Lecture Survey of accounting (4/e) - Chapter 15: Performance evaluation

After you have mastered the material in this chapter, you will be able to: Describe the concept of decentralization, distinguish between flexible and static budgets, classify variances as being favorable or unfavorable,. | Chapter Fifteen Performance Evaluation © 2015 McGraw-Hill Education. 1 An accounting system that provides information . . . Responsibility Accounting Relating to the responsibilities of individual managers. To evaluate managers on controllable items. 15-2 2 Decentralization Improves quality of decisions. Encourages upper-level management to concentrate on strategic decisions. Improves productivity. Develops lower-level managers. Improves performance evaluation. Advantages 15-3 3 Responsibility Centers 15-4 4 Cost Center Profit Center Investment Center Evaluation Measures Profitability Return on investment (ROI) Residual income (RI) Cost control Quantity and quality of services Managerial Performance Measurement 15-5 5 Since the exercise of control may be clouded, managers are usually held responsible for items over which they have predominant rather than absolute control. I’m in control Controllability Concept Managers should only be evaluated on revenues or costs they control. 15-6

• Kế toán - Kiểm toán
• Survey of accounting
• Lecture Survey of accounting
• Performance evaluation
• Responsibility accounting
• Volume variances
• Flexible budget variances
• Accounting for cash
• Accounting cycle
• Financial resources
• Accounting provides information
• Internal controls
• Accounting profession
• Accounting for receivables
• Inventory cost flow
• Accounting for liabilities
• Bonds issued
• Managerial accounting
• Product costing
• Financial statements
• Ledger accounts
• Merchandising businesses
• Transportation costs
• Long term operational assets
• Depreciation method