Responsibility accounting and evaluation of divisional performance
Summary :
Table of Contents
- Responsibility accounting and evaluation of divisional performance
- Centralization vs Decentralization
- Benefits and costs of decentralized organizations
- An overview of Return On Investment (ROI)
- Various factors of ROI
- Problem with Residual Income
- Economic Value Added (EVA) as a Performance Measure
- Alternatives to ROI, Residual Income and EVA
- Conclusion
Abstract
This presentation will start with a comparison between centralization and decentralization. From there it will go into a look at the benefits and costs of a decentralized organization before moving onto responsibility accounting along with control and performance evaluations. it will then examine responsibility centers and measuring management performance. It will also look at returns on investment and the factors underlining the same. It will then move onto residual income and economic value added. Then it will present the four basic balanced scorecard perspectives along with an explanation for what a balance scorecard is. It will finally move towards customer value and financial performances also.
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