Upload File

04 - responsibility centers revenue and expense centers.ppt

  • Home
  • Documents
  • 04 - Responsibility Centers Revenue and Expense Centers.ppt
prev
next
out of 15
Download 04 - Responsibility Centers Revenue and Expense Centers.ppt

Upload: jason-kurniawan

Post on 12-Apr-2018

224 views

Category:

Documents


0 download

Report

TRANSCRIPT

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    1/15

    Chapter 4

    RESPONSIBILITYCENTERS: REVENUEAND EXPENSE CENTERS

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    2/15

    Responsibility Centers

    A responsibility centeris an organization unitthat is headed by a manager who is responsiblefor its activities

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    3/15

    Nature ofResponsibility Centers

    Work

    Inputs

    Resources used,

    measured by cost

    Outputs

    Goods or services

    Capital

    Outputs

    Another responsibility centers

    Outside marketplace

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    4/15

    Relation betweenInputs and Outputs

    Management is responsible for ensuring theoptimum relationshipbetween inputs and

    outputs.

    Relationships

    Causal & Direct Not Direct

    Ex: Production department Ex: Advertising expense,

    R & D

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    5/15

    Measuring Inputs & Outputs

    In a MCS, inputs in quantitative amountsare translated into monetary terms.

    Physical quantity x price per unit

    Cost

    It is much easier to measure the cost ofinputs than to calculate the value of outputs

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    6/15

    Efficiency and Effectiveness

    Efficiencyis the ratio of outputs to inputs, orthe amount of output per unit of input.

    Effectivenessis determined by the relationshipbetween a responsibility centers output and itsobjectives.

    Efficient does things right

    Effective does the right things

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    7/15

    Types of Responsibility Centers

    Classification the nature of the monetaryinputs and/ or outputsthat are measured for

    control purpose.

    Types of responsibility centers:

    Revenue centers

    Expense centers

    Profit centers

    Investment centers

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    8/15

    Revenue Centers

    In revenue centers, output (i.e., revenue) ismeasured in monetary terms, but no formalattempt is made to relate input (i.e., expense orcost) to output.

    Ex: marketing/sales unit that do not have

    authority to set selling prices and are notcharged for the cost of gods they market.

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    9/15

    Expense Centers

    Expense centersare responsibility centerswhose inputs are measured in monetary terms,but whose output are not.

    Types of expense center:

    Engineered costsare those for which the right orproper amount can be estimated with reasonable

    reliability. Discretionary costs (managed cost)are those for

    which no such engineered estimate is feasible.

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    10/15

    Engineered Expense Centers

    Characteristic:

    Their input can be measured in monetary terms.

    Their output can be measured in physical terms.

    The optimum dollar amount of output requiredto produce one unit of output can bedetermined.

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    11/15

    Discretionary Expense Centers

    Include administrative & support units, R & Doperation, most marketing activities.

    The difference between budget & actual expense

    is not a measure of efficiency.

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    12/15

    General Control Characteristics

    Budget Preparation

    Engineered expense center: efficiency

    Discretionary expense: management by objectives

    Cost Variability

    Type of Financial Control

    Measurement of Performance

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    13/15

    Administrative& Support Centers

    Administrative centersinclude senior corporatemanagement and business unit management,along with the managers of supporting staff units.

    Support centersare units that provide servicesto other responsibility centers.

    Control problems:Difficulty in measuring output

    Lack of goal congruence

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    14/15

    Research& Development Centers

    Control problems:

    Difficulty in relating results to inputs.

    Lack of goal congruence. The R&D Continuum

    Basic

    Research

    Product

    TestingAppliedresearch

    DevelopmentProduct

    Engineering

  • 7/21/2019 04 - Responsibility Centers Revenue and Expense Centers.ppt

    15/15

    Marketing Centers

    Two types of marketing activities:

    Logistic activities (order filling)

    Fundamentally similar to expense centers inmanufacturing plants.

    Marketing activities (order getting)

    It is difficult to evaluating effectiveness of

    marketing efforts because changes in factorsbeyond


Copyright © 2003 McGraw-Hill Ryerson Limited, Canada 9-1 Responsibility Centers A responsibility center is the point in an organization where the control

 · GiftJAwards/Memoriais Expense Legal Services Loan Repayment/Reimbursement Office OverheacVRental Expense Polling Expense Printing Expense Salaries,'Wages/Contract Labor

Social Responsibility in Binational Centers

youth centers 01-20 - UNICEF · Youth Centers Review Final Report ... objectives, programs, activities, ... of the same code bestows to MoY the responsibility of forming all public

Americo’s Final Expense Portfoliomedicareadvantagesupportteam.com/Final Expense... · Americo’s Final Expense Portfolio Eagle Series rounds out your final expense ... date the

Management Control Systems. Responsibility Centers Cost center Revenue center Investment center Profit center

Responsibility Centers : Revenue and Expense Centers Management Control Systems Chapter 4 July 2014Iwan Pudjanegara SE., MM.1

Expense Is Expense a Comments and Special Rules Qualifying … · 2017-09-29 · Expense Is Expense a Qualifying Expense? Comments and Special Rules AA meetings, transportation to

Decentralization and Performance Evaluation. Responsibility Centers Costs and benefits of decentralization Return on Investment Residual Income

Responsibility Centers Chapter 4 and 5. An important component of Management Controls – Assigning responsibility for executing strategy Implementing strategies

EMBA Presentation November 15,2012. Internal Performance Measurement Responsibility Centers Residual Income Return on Investment EVA

14 Responsibility Centers and Reporting Segments

Service Area Service Division Expense Type Expense Detailed … · 2014. 5. 14. · Service Area Service Division Expense Type Expense Code Detailed Expense Type Payment Date Transaction

Responsibility centers final Prof Rishi Chourasia

 · Gift/Awards/MemoriaIs Expense Loan Repayment/Reimbursement Office Overhead/Rental Expense Polling Expense Printing Expense Salaries/Wages/Contract Labor

Expense Analysis and Splitting in Manufacturing Cost Centers

Employee Business Expense Policy - · PDF fileEffective: 01/01/2016 Employee Business Expense Policy TABLE OF CONTENTS 1.0 General 2.0 Scope 3.0 Definitions 4.0 Responsibility

IBB Transition Support Plan for Responsibility Centers Transition Support Plan for... · IBB Transition Support Plan for Responsibility Centers ... •Transition to IBB in Responsibility

Meaningful Literacy Centers - robeson.k12.nc.us · Meaningful Literacy Centers ... The Gradual Release of Responsibility ... The next slide is a reading assignment much like many

Responsibility centers

Social Responsibility in Binational Centers

Time and Expense Entry. Weekly Timesheet ◦ Time Entry Expense Report ◦ Types of Expense ◦ Expense Report Screen ◦ Expense Entry Team Leader Approval

Transaction Registration Body Name Body Expense Area Expense … · 2019-06-24 · Body Name Body Expense Area Expense Type Expense Code Date Paid Transaction Number Amount Category

Expense Management - marketplace.creatio.com€¦ · Expense Management 5 of 9 This utility will auto calculate the total expense of all expense details created for a created Expense

Responsibility Centers, Decision Rights, and Synergies · Responsibility Centers, Decision Rights, and Synergies Tim Baldeniusy Beatrice Michaeli z May 2, 2018 ... needs as key determinants

Association of Community Health Centers - NACHC · Community Health Centers, ... It is your responsibility to download these ... Operations and Finance, Workforce, Social Determinants

Social Responsibility Report...strategy and operations. Our Social Responsibility Strategic Framework centers on four core pillars: Responsible Employer, Impact on Society, Customer

Bab 3 Responsibility Centers (Revenue and Expense Center)

9. Responsibility Centers

Responsibility Centers: Revenue and Expense Centers ...staff.uny.ac.id/.../presentasi-ch3-responsibility-centers.pdf · Nature Responsibility Centers • A responsibility center exists

Gizmosys Expense Report, Expense Approval, Expense Claim

LIST OF ACCREDITED ASSESSMENT CENTERS (AC's) As ......2020/02/15  · ASSESSMENT CENTERS LOCATION & CONTACT# LEVEL OF RESPONSIBILITY MANAGEMENT LEVEL OPERATIONAL LEVEL RATINGS FORMING

Management Control Environment(Responsibility Centers)

15.963 Management Accounting and Control - MIT · PDF file15.963 Management Accounting and Control ... Cost Management ... responsibility accounting and responsibility centers;

Responsibility Centers: Revenue and Expense Centers