0Responsibility Accounting & Performance Measurement, Managerial accounting tools of responsibility accounting and other performance measures related to decentralization.
What you”ll learn:
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Define responsibility accounting and explain its role in decentralized organizations, highlighting the advantages and disadvantages of decentralization.
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Differentiate between managerial accounting and financial accounting, understanding their respective roles and how they contribute to responsibility accounting.
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Identify the components of a responsibility accounting system and analyze its benefits for performance evaluation and decision-making.
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Categorize costs as direct or indirect and understand the significance of this categorization for departmental financial reporting and analysis.
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Evaluate various methods of allocating indirect costs to departments, considering the strengths and limitations of each method.
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Construct departmental income statements, demonstrating the ability to prepare and analyze financial statements at the department level.
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Forecast departmental income statements, utilizing forecasting techniques to project future financial performance and make informed decisions.
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Analyze performance measures like ROI and balanced scorecard for effective evaluation.
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Apply responsibility accounting principles to real-world scenarios for problem-solving.
- Utilize Excel for calculations, financial statements, and data analysis in responsibility accounting.
Description
Responsibility accounting & performance measures.
We will describe the concept of decentralization, how it applies to businesses, and the pros and cons of a more decentralized organization from a centralized one.
The course will cover general managerial accounting concepts necessary to study responsibility accounting, comparing and contrasting managerial accounting and financial accounting.
We will explain what a responsibility accounting system looks like and the benefits of a responsibility accounting system.
The course will discuss the categorization of costs between direct costs and indirect costs and why this categorization between direct and indirect is useful for reporting financial data by department.
We will describe the problems with allocating indirect costs to the proper departments and explain various methods for allocating indirect costs.
The course will describe what a departmental income statement is and how to create a departmental income statement.
We will explore what a forecasted departmental income statement is and put together a forecasted departmental income statement.
The course will discuss other performance measures like return on investment (ROI) and a balance scorecard.
We will also complete a comprehensive problem using preformatted Excel worksheets and step by step instructional videos.
