《会计学(沃伦)》第23讲 分权经营的业绩评价

Cost Centers
Budget Performance Report
Vice-President, Production For the Month Ended October 31, 2006
Over Budget Actual Budget
Administration
$ 19,500 $ 19,700 $ 200
Cost Centers
Budget Performance Report Manager, Plant A
For the Month Ended October 31, 2006
Budget
Over Under Actual Budget Budget
Administration Department 1 Department 2 Department 3
corner of the screen. You can point and click anywhere on the screen.
Objectives
1. List and explain the advantages and disadvantaAgfetesr osftuddeycinegnthraislized operationsc.hapter, you should
$ 17,500 $ 17,350 110099,,772255 11111,2800 190,500 192,600 149,750 149,100
$467,475 $470,330
$$11,,555555 2,100
$3,655
$150
650 $800
From the Supervisor—Department 1, Plant A budget performance report (Slide 12).
Accounting
Cost Centers
Budget Performance Report Supervisor, Department 1—Plant A For the Month Ended October 31, 2006
Budget
Over Under Actual Budget Budget
PPllaannttAA Plant B
446677,,44775 447700,,33330 22,,88555 395,225 394,300
$882,200 $884,330 $3,055
Under Budget
$925 $925
Note that Over Budget is a net figure.
Division and the Movie Production Division.
Revenues Operating expenses
Theme Park Movie Production
Division
Division
$6,000,000
$2,500,000
2,495,000
405,000
Profit Centers
Plant A
467,475 470,330 2,855
Plant B
395,225 394,300
$882,200 $884,330 $3,055
Under Budget
$925 $925
Each of the line items above is supported by a cost center report.
Decentralized Operations
▪ Decisions made by one manager may negatively affect the profitability of the entire organization.
▪ Assets and operating costs are duplicated (e.g., each division has its own administrative office staff).
25,000 purchase requisitions
Movie Production Division: 15,000 purchase requisitions
Total
40,000
$400,000
= $10 per purchase
40,000 purchase requisitions requisition
$ 17,500 $ 17,350 109,725 111,280 190,500 192,600 149,750 149,100 $$446677,,447755 $$447700,,333300
$1,555 2,100
$3$3,6,65555
$150
650 $$880000
This is shown on the Vice-President’s budget production report (Slide 16).
Cost Centers
Budget Performance Report
Vice-President, Production For the Month Ended October 31, 2006
Over Budget Actual Budget
Administration
$ 19,500 $ 19,700 $ 200
Charging Service Department Costs to Production Divisions
Purchasing Department: $400,000 (Activity base: number of purchase requisitions)
Theme Park Division
Responsibility Accounting for Profit Centers
In a profit center, the unit manager has the responsibility and the authority to make
decisions that affect both costs and revenues.
Cost Centers
Budget Performance Report Manager, Plant A
For the Month Ended October 31, 2006
Budget
Over Under Actual Budget Budget
Administration Deeppaarrtmtmeennt t11 Department 2 Department 3
customer relations by responding quickly to customers’ needs. ▪ Managers become more creative in suggesting operating and product improvement.
Disadvantages of
Responsibility Centers
Cost Centers Managers are held accountable for controlling costs.
Profit Centers Managers are held accountable for costs and making decisions that impact revenues favorably.
Factory wages Materials Supervisory salaries Power and light Depreciation Maintenance Insurance, taxes
$ 58,100 $ 58,000
32,500 34,225
6,400 6,400
5,750 5,690
Chapter 23
Performance EvaluaБайду номын сангаасion for Decentralized Operations
Some of the action has been automated, so click the mouse when you see this lightning bolt in the lower right-hand
Responsibility Accounting for Cost Centers
COST CENTERS IN A UNIVERSITY
UNIVERSITY
College of College of Business Engineering
College of Arts and Sciences
Centralized and Decentralized
Operations
Advantages of
Decentralization
▪ It allows managers to focus on acquiring expertise in their areas of responsibility.
Responsibility Centers
Investment Centers Managers are held accountable for costs and revenues and are also held accountable for the efficient use of assets.
2. Prepare a respboenasbilbeiltioty: accounting report for a cost center.
3. Prepare responsibility accounting reports for a profit center.
4. Compute and interpret the rate of return on investment, the residual income, and the balanced scorecard for an investment center.
▪ Decentralizing decision making provides excellent training for managers.
▪ Delegation improves employee morale. ▪ Decentralization helps managers create good
COLLEGE Dept. of Marketing
Dept. of Accounting Dept. of Management
Responsibility Accounting for Cost Centers
COST CENTERS IN A UNIVERSITY
DEPARTMENT
Department of
Profit centers may be divisions, departments,
or products.
Profit Centers
NEG, a diversified entertainment company, has two profit centers: the Theme Park
Objectives
5. Explain how the market price, negotiated price, and cost price approaches to transfer pricing may be used by decentralized segments of a business.
4,000 4,000
2,000 1,990
975
975
$$110099,,772255 $$111111,,228800
$1,725 $$11,,772255
$100
60 10 $$11770
These totals are shown on the Manager, Plant A’s budget performance report (Slide 13).
Profit Centers
Charging Service Department Costs to Production Divisions
Payroll Accounting: $255,000 (Activity base: number of payroll checks)