《ManagementAccounting》ch10现代责任会计Resp.ppt

Activity- and Strategy-Based Responsibility Accounting 现代责任会计,CHAPTER,1. Define responsibility accounting, and describe four types of responsibility centers. 2. Compare and contrast functional-based, activity-based, and strategic-based responsibility accounting systems. 3. Discuss methods of evaluating and rewarding managerial performance. 4. Explain process value analysis. 5. Describe activity performance measurement.,Objectives,Responsibility accounting is a system that measures the results of each responsibility center according to the information managers need to operate their centers.,1. Responsibility Accounting,394,1) Types of Responsibility Centers,Cost center成本中心: A responsibility center in which a manager is responsible only for costs. Revenue center收入中心: A responsibility center in which a manager is responsible only for sales.,ACCOUNTING INFORMATION USED TO MEASURE PERFORMANCE,Capital Cost Sales Investment Other,Cost center x Revenue center Direct cost x only Profit center x x Investment center x x x x 394,Types of Responsibility Centers,Profit center利润中心: A responsibility center in which a manager is responsible for both revenues and costs. Investment center投资中心: A responsibility center in which a manager is responsible for revenues, costs, and investments.,Return on Investment,ROI =,2) Investment center performance measuring: 397,Margin and Turnover,ROI =,Margin x Turnover,1. It encourages managers to focus on the relationship among sales, expenses, and investments. 2. It encourages managers to focus on cost efficiency. 3. It encourages managers to focus on operating asset efficiency.,Advantages of ROI,It can produce a narrow focus on divisional profitability at the expense of profitability for the overall firm. It encourages managers to focus on the short run at the expense of the long run.,Disadvantages of ROI,Economic value added (EVA) is after-tax operating profit minus the total annual cost of capital.,3) Economic Value Added,EVA = After-tax operating income (Weighted average cost of capital * Total capital employed),There are two steps involved in computing cost of capital: 1. Determine the weighted average cost of capital (a percentage figure) 2. Determine the total dollar amount of capital employed,Cost of Capital,例:Weighted Average Cost of Capital,Amount Percent x After-Tax Cost = Weighted Cost,Bonds $2,000,000 0.25 0.009(1 0.4) = .054 0.0135 Equity 6,000,000 0.75 0.06 + 0.06 = .120 0.0900 Total $8,000,000 0.1035,A number of companies have discovered that EVA helps to encourage the right kind of behavior from their divisions分部 in a way that emphasis on operating income alone cannot. The underlying reason is EVAs reliance on the true cost of capital.,Behavioral Aspects of EVA,Behavioral Aspects of EVA,In many companies, the responsibility for investment decisions rests with corporate management. As a result, the cost of capital is considered a corporate expense. If a division builds inventories and investment, the cost of financing that investment is passed along to the overall income statement and does not show up as a reduction from the divisions operating income.,对于两个责任中心而言The value of a transferred good is revenue to the selling division and cost to the buying division. This value is called transfer pricing.,4)Transfer Pricing转移定价,(1) divisional performance measures 分部业绩 (2) firm-wide profits 公司整体利润 (3) divisional autonomy 分部自主权,Transfer Pricing,Transfer pricing affects both transferring divisions and the firm as a whole through its impact on-,The Transfer Pricing Illustration,Tyson Manufacturers produces small appliances. The Small Parts Division produces parts used by the Small Motors Division. The parts also are sold to other manufacturers and wholesalers.,The Transfer Pricing Illustration,The Small Motors Division is operating at 70 percent capacity. A request is received for 100,000 units of a certain model at $30 per unit. A component for this motor can be supplied by the Small Parts Division. The transfer price is $8 despite the Small Parts Division only experiencing a cost of $5 per unit.,The Transfer Pricing Illustration,Using the $8 transfer price, the total cost is $31 per unit, calculated as follows:,The Transfer Pricing Illustration,The Small Motors Division is operating at 70 percent capacity, so the $10 fixed cost is not relevant. Recalculating the cost-,The Small Motors Division can pay the Small Parts Division $8 per unit and still make a substantial contribution to the overall profitability of the Division.,Direct materials $10 Transferred-in component 8 Direct labor 2 Variable overhead 1 Total cost $21,Negotiated Transfer Prices,Negotiated Transfer Prices,In this case, negotiated transfer prices may be a practical alternative. Opportunity costs can be used to define the boundaries of the negotiation set.,Disadvantages of Negotiated Transfer Prices,A division manager who has private information may take advantage of another divisional manager. Performance measures may be distorted by the negotiated skills of managers. Negotiation can consume considerable time and resources.,Despite the disadvantages, negotiated price transfer prices offer some hope of complying with the three criteria of goal congruence, autonomy, and accurate performance evaluation.,以Opportunity Cost Approach确定,This approach identifies the minimum and maximum price that a selling division would be willing to accept and the maximum price that a buying division would be willing to pay.,The minimum transfer price is the transfer price that would leave the selling division no worse off if the goods were sold to an internal division than if the good were sold to an external party (floor).,The maximum transfer price is the transfer price that would leave the buying division no worse off if an input were purchased from an internal division than if the good were purchased externally (ceiling).,2. Responsibility Accounting model,Assigning responsibility划分职责 Establishing performance measures or benchmarks 建立考核基准 Evaluating performance 评价业绩 Assigning rewards 给予奖励,The responsibility accounting model is defined by four essential elements:,pp.2823,Functional-based基于功能的 Activity-based 基于作业的 Strategic-based 基于策略的,Types of Responsibility Accounting,Management accounting offers the following three types of responsibility accounting systems.,A functional-based responsibility accounting system assigns responsibility to organizational units(组织单元) and expresses(描述) performance measures(业绩考核) in financial terms(以数据的方式).,1) Functional-Based Responsibility Accounting System,It was developed when most firms were operating in relatively stable(稳定的) environments.,Responsibility is Defined,Elements of Functional-Based Responsibility Accounting,Why would managers not provide good service? There are three reasons: 1. They may have low ability 2. They may prefer not to work as hard as needed 3. They may prefer to spend company resources on perquisites,Incentive Pay for Managers,Incentive Pay for Managers,Perquisites are a type of fringe benefit given to managers over and above a salary.,A nice office Use of a company car or jet Expense accounts Paid country club memberships,An activity-based responsibility accounting system assigns responsibility to processes and uses both financial and nonfinancial measures of performance. (含非财务指标考核),2) Activity-Based Responsibility Accounting System,It is the responsibility accounting system developed for those firms operating in continuous improvement environments (持续发展的环境).,Responsibility is Defined,Elements of an Activity-Based Responsibility Accounting System (p285 ),3） Strategy-Based Responsibility Accounting System,A strategic-based responsibility accounting system (Balanced Scorecard) translates the mission and strategy of an organization into operational objectives and measures for four different perspectives:,The financial perspective The customer perspective The process perspective The infrastructure (learning and growth) perspective,Responsibility Is Defined,288,Elements of an Activity-Based Responsibility Accounting System,Activity-based management (ABM) is a systemwide, integrated approach that focuses managements attention on activities with the objective of improving customer value and the profit achieved by providing this value.,3. Activity-Based Management (ABM),Activity-based management encompasses both product costing and process value analysis.,Cost Dimension,Activity-Based Management 二维模型,Resources,Process value analysis is fundamental to activity-based responsibility accounting, focuses on accountability for activities rather than costs, and emphasizes the maximization of systemwide performance instead of individual performance.,1) Process Value Analysis,Process value analysis is concerned with: Driver analysis Activity analysis Activity performance measurement,2) Activity Analysis,Activity analysis is the process of identifying, describing, and evaluating the activities an organization performs.,Activity analysis should produce four outcomes:,What activities are done. How many people perform the activities. The time and resources are required to perform the activities. An assessment of the value of the activities to the organization.,Those activities necessary to remain in business are called value-added activities.,Value-Added Activities,Activities needed to comply with the reporting requirements, such as the SEC, are value-added by a mandate.,Value-Added Activities,A discretionary activity is classified as value-added provided it simultaneously satisfies three conditions:,Value-Added Activities,The activity produces a change of state. The change of state was not achievable by preceding activities. The activity enables other activities to be performed.,All activities other than those essential to remain in business are referred to as nonvalue-added activities.,Nonvalue-Added Activities,Nonvalue-Added Activities,Scheduling 工序安排 Moving 移动 Waiting 等候 Inspecting 检验 Storing 贮存,Activity Analysis,Activity elimination Activity selection Activity reduction Activity sharing,Activity Analysis Can Reduce Costs in Four Ways:,Efficiency Quality Time,Measures of Activity Performance,Measures of Activity Performance,Financial measures of activity efficiency include:,Value and nonvalue-added activity cost reports Trends in activity cost reports Kaizen standard setting Benchmarking Life-cycle costing,Value- and Nonvalue-Added Cost Reporting,Activity Activity Driver SQ AQ SP Welding Weld