TAILIEUCHUNG - Lecture Introduction to managerial accounting: Chapter 10 - Folk, Garrison, Noreen

After studying Chapter 10, you should be able to: Understand the role of cost, profit, and investment centers in a decentralized organization; compute the return on investment (ROI); show how changes in sales, expenses, and assets affect an organization's ROI; compute residual income and understand the strengths and weaknesses of this method of measuring performance. | Decentralization Chapter10 Decentralization in Organizations Benefits of Decentralization Top management freed to concentrate on strategy. Lower-level managers gain experience in decision-making. Decision-making authority leads to job satisfaction. Lower-level decision often based on better information. Improves ability to evaluate managers. Decentralization in Organizations Disadvantages of Decentralization Lower-level managers may make decisions without seeing the “big picture.” May be a lack of coordination among autonomous managers. Lower-level manager’s objectives may not be those of the organization. May be difficult to spread innovative ideas in the organization. Decentralization and Segment Reporting A segment is any part or activity of an organization about which a manager seeks cost, revenue, or profit data. A segment can be . . . Quick Mart An Individual Store A Sales Territory A Service Center Cost, Profit, and Investments Centers Cost Center A segment whose manager has control over costs, but not over revenues or investment funds. Cost Cost Cost Cost, Profit, and Investments Centers Profit Center A segment whose manager has control over both costs and revenues, but no control over investment funds. Revenues Sales Interest Other Costs Mfg. costs Commissions Salaries Other Cost, Profit, and Investments Centers Investment Center A segment whose manager has control over costs, revenues, and investments in operating assets. Corporate Headquarters Cost, Profit, and Investments Centers Responsibility Center Cost Center Profit Center Investment Center Cost, profit, and investment centers are all known as responsibility centers. Return on Investment (ROI) Formula ROI = Net operating income Average operating assets Cash, accounts receivable, inventory, plant and equipment, and other productive assets. Income before interest and taxes (EBIT) Return on Investment (ROI) Formula Regal Company reports the following: Net operating income $ 30,000 Average operating .

• Kế toán - Kiểm toán
• Managerial accounting
• Systems design
• Lecture Managerial accounting
• Business environment
• Decentralization in organizations
• Investments centers
• Managerial accounting for managers
• Profitability analysis
• Decision making
• Operations management majors
• Nonmanufacturing costs
• Classifications of costs
• Kế toán quản trị
• Managerial accounting information
• General cost classifi cations
• Product costs
• Process costing
• Standard costing systems
• Accounting information
• Managerial decision
• Process management
• Financial statement
• Cost concepts
• Managerial accounting basics
• Managerial cost
• Period costs
• Lecture Financial and managerial accounting
• Financial statements
• Managerial decisions
• Financial accounting
• Dynamic business environment
• Reporting manufacturing activities
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Relevant costing
• Accounting activities
• Business activities
• Income statement
• Accounting cycle
• Accounting for merchandising operations
• Merchandising operations
• Capital budgeting decisions
• Time value of money
• Income taxes
• After tax cost