TAILIEUCHUNG - Management accounting: Information for creating and managing value (4/e): Chapter 12 - Kim Langfield-Smith, Helen Thorne

Chapter 12 - Financial performance reports and transfer pricing. This chapter presents the following content: Decentralisation and responsibility accounting, decentralisation, responsibility centres, new developments in organisational structuring, financial performance reports,. | Chapter 12 Financial performance reports and transfer pricing 12- Decentralisation and responsibility accounting Decentralisation The restructuring of the organisation into smaller sub-units, such as divisions and departments, each with specific operations and decision-making responsibilities Responsibility accounting Assign responsibility to managers to run particular sub-units of the organisation Helps to reinforce the advantages of decentralisation Goal congruence helps ensure that decentralised organisations are effective Consistency between managers’ personal goals and the goals of the organisation 12- Decentralisation Benefits Managers of sub-units have better local information about markets and operations to enable them to manage their areas more effectively Provides managerial training for future higher-level managers May lead to greater motivation and job satisfaction for sub-unit managers Allows corporate managers more time for strategic issues Allows the organisation to react more quickly to opportunities and problems as they arise continued 12- Decentralisation Negative consequences Managers may focus too narrowly on their own sub-unit’s performance rather than on attaining the organisation’s overall goals Some tasks and services may be duplicated unnecessarily Goal congruence: a behavioural challenge Goal congruence may be difficult to achieve in a decentralised organisation Performance measures and reward systems may provide direction and incentives to achieve wider organisational goals 12- Responsibility centres A responsibility centres is a sub-unit of an organisation where the manager is held accountable for the sub-unit’s activities and performance Investment centre Profit centre Cost centre Revenue centre continued 12- 12- Responsibility centres Terminology used in practice Cost centre is commonly used Revenue centre seldom used Profit centre may refer to both profit centres and investment centres Strategic business unit

• Ngân hàng - Tín dụng
• Management accounting
• Lecture Management accounting
• Management accounting information
• Managing value
• Financial performance reports
• Transfer pricing
• Financial accounting
• Management accountants
• Business environment
• Bài giảng Kế toán quản trị
• Nature of management accounting
• Component of accounting system
• Managerial accounting
• Management accounting systems
• Costing systems
• Environmental management accounting
• Cst accounting in action
• Management cost accounting
• Accounting for management
• Cost accounting in action
• Advanced fraud
• Managing resources
• Australian organisations
• Emphasis on cost
• Social management accounting
• Corporate social responsibility
• Paper F2
• Revision kit 2016
• Document management accounting
• Management accounting Review
• Implementation of management accounting
• Study text 2016
• Tiếng Anh kinh doanh
• F2 Management Accounting
• ACCA Paper F2
• Paper F2 Management Accounting
• Book ACCA Management Accounting
• Lecture Advanced management accounting
• Bài giảng Kế toán quản trị nâng cao
• Advanced management accounting
• Inflation accounting
• Current purchasing power method
• Current cost accounting method