Divisional performance Chapter 20 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007

Slides:



Advertisements
Similar presentations
© The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Rewarding Business Performance Chapter 24.
Advertisements

© The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Decision Making is pushed down. Delegation of Decision Making (Decentralization) Decentralization.
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 18 Organizational Design, Responsibility Accounting, and Evaluation.
Evaluation of Investment Centers Managerial Accounting Prepared by Diane Tanner University of North Florida Chapter 24.
© The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin 25-1 REWARDING BUSINESS PERFORMANCE Chapter 25.
Management Control Systems Chapters 16 & 17 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007.
Chapter 10 Decentralization: Responsibility Accounting,
Chapter 12 Decentralization and Performance Evaluation
Performance Management and Evaluation – Chapter 21 Financial & Managerial Accounting, 8 th Edition by Needles, Powers, Crosson.
Transfer pricing Chapter 21 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007
Chapter 13 Business Unit Performance Measurement.
Job costing Chapter 4 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007
Situational Decisions Chapters 9 & 10 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007
Decentralization Autonomy Authority to make decisions Responsibility 12 Segment Reporting and Decentralization Chapter.
Chapter 15 Chapter 15 Performance Evaluation and Compensation Key Topics: –Agency theory –Knowledge and assigning decision-making authority –Performance.
Cost terms and concepts Chapters 2&3 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007
Responsibility Accounting and Performance Evaluation
Performance Evaluation and the Balanced Scorecard
Return on Investment and Residual Income Managerial Accounting Prepared by Diane Tanner University of North Florida Chapter 25.
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license.
© 2013 John Wiley & Sons, Ltd, Accounting for Managers, 1Ce, Ch 13
Variance Analysis Chapter 18 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007
16-1 Copyright © 2004 by Nelson, a division of Thomson Canada Limited. Financial Performance Evaluation and Transfer Pricing in the Decentralized Firm.
Business Unit Performance Measurement Chapter 14 Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
Decentralization and Performance Evaluation
ROI, Residual Income, and Economic Value Added
ADVANCED MANAGEMENT ACCOUNTING
Managerial Accounting:
Financial performance measures and transfer pricing
1 Copyright © 2008 Thomson South-Western, a part of the Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under.
©2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publically accessible website, in whole or in part.
Managerial Accounting: An Introduction To Concepts, Methods, And Uses Chapter 11 Investment Center Performance Evaluation Maher, Stickney and Weil.
RESPONSIBILITY ACCOUNTING. Responsibility Center Types  Underlying the accounting classifications of responsibility centers is the concept of controllability:
Management and Cost Accounting, 6 th edition, ISBN © 2004 Colin Drury Management and Cost Accounting, 6 th edition, ISBN ©
Responsibility Accounting and Transfer Pricing
Copyright © 2008 Prentice Hall All rights reserved 12-1 Performance Evaluation and the Balanced Scorecard Chapter 12.
© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin Financial & Managerial Accounting The Basis for Business Decisions FOURTEENTH EDITION Williams.
Volume Decisions Chapters 8 & 10 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007
Chapter 24 Responsibility Accounting and Performance Evaluation
Accounting 4310 Chapter 14 Business Unit Performance.
RESPONSIBILITY ACCOUNTING CHAPTER 22 & Decentralization  Decentralization is the freedom for managers at lower levels of the organization to make.
Chapter 23. Explain why and how companies decentralize.
Capital Investment Decisions Chapters 13 & 14 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH,
Performance Evaluation Return on Investment EBIT / Operating Assets Problems with formula EBIT Why not net income? Operating Assets Book value versus fair.
AC239 Managerial Accounting Seminar 8 Jim Eads, CPA, MST, MSF Performance Evaluation for Decentralized Operations 1.
Market Decisions Chapters 11 & 12 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007
10-1 Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing 10.
Cost and Management Accounting: An Introduction, 7 th edition Colin Drury ISBN © 2011 Cengage Learning EMEA LEARNING NOTE 14.1 Responsibility.
© 2007 Pearson Education Canada Slide 14-1 Decentralized Organizations, Transfer Pricing, and Measures of Profitability 14.
1 PowerPointPresentation by PowerPoint Presentation by Gail B. Wright Professor Emeritus of Accounting Bryant University MANAGERIAL ACCOUNTING 10 TH EDITION.
Measuring and Controlling Assets Employed
Introduction The dilemma for companies is to find tools that allow the evaluation of managers at all levels in the organization. How would the evaluation.
Investment Centers and Transfer Pricing CHAPTER 13 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.
Managerial Accounting: An Introduction To Concepts, Methods, And Uses Chapter 13 Investment Center Performance Evaluation Maher, Stickney and Weil.
Copyright © 2007 Prentice-Hall. All rights reserved 1 Performance Evaluation and the Balanced Scorecard Chapter 12.
Cost Management Chapter 22 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007
Performance Evaluation for Decentralized Operations
Planning for the future Chapter 15
CHAPTER FIVE Responsibility Accounting and Transfer Pricing.
Responsibility Accounting and Transfer Pricing Chapter Five Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
10-1 Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing.
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
Divisional Performance Evaluation. Management Accounting Systems Cost Accounting Systems Budgeting Systems Variance Analysis Performance Measurement Systems.
Internal Performance Measurement and Transfer Pricing
Review.
Investment Centers and Transfer Pricing
Management control of business units
Decentralization and Performance Evaluation
Financial performance measures and reward systems
Decentralization and Performance Evaluation
Presentation transcript:

Divisional performance Chapter 20 ME 2027 Performance and Cost Analysis ME 2605 Cost Management and Control (for IMIM) Håkan Kullvén, KTH, 2007

A functional organisation Figure 20.1 page 839

A divisionalized organisation Figure 20.1 page 839

&  Improved quality of decisions Speedier decisions Increased managerial motivation Frees top management time  Sub optimization  Lack of goal congruence  More costly to operate  Loss of control by top management

Reports for divisions Exhibit 20.1 page 844

Return on investment, ROI The most widely used model, easy to understand. But: May motivate for decisions not in line with company ROI But: May motivate to make incorrect asset disposal decisions page 845

Residual Income, RI More likely to encourage goal congruence Can use different % for different investments But: Is not that widely used Also: EVA, Economic Value Added page 846

Problem with depreciation Exhibit 20.2 page 852

Next, we… Are going to explore how prices are set for the services and goods that are transferred from one internal department to another one. Chapter 21

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.