management control systems and responsibility accounting：管理控制系统与责任会计

Management Control Systems and Responsibility Accounting,Chapter 9,Learning Objective 1,Describe the relationship ofmanagement control systemsto organizational goals.,Management Control Systems,This is a logical integration of techniquesfor gathering and using information.,Planningand control,Motivating,Evaluating,The Management Control System,Set goals,measures,targets,Monitor,report,Evaluate,reward,Planandexecute,Feedbackandlearning,Setting Goals, Objectives, and Performance Measures,Top management develops organization-widegoals, measures, and targets. They also identifythe critical processes needed to achieve the goals.,Top management and critical process managersdevelop key success factors and performancemeasures. They also identify specific objectives.,Critical process managers and lower-levelmanagers develop specific performancemeasures for each objective.,Organizational Goals,Goals provide a long-termframework around whichan organization will formits comprehensive plan forpositioning itself in the market.,Key Success Factors,Key success factors are characteristics thatmanagers must achieve in order to drivethe organization toward its goals.,Learning Objective 2,Use responsibility accountingto define an organizationalsubunit as a cost center,a profit center, or aninvestment center.,Identifying Responsibility Centers,System designers apply responsibilityaccounting to identify what part ofthe organization has responsibilityfor each action.,A responsibility center is a set of activitiesassigned to a manager, a group ofmanagers, or other employees.,Identifying Responsibility Centers,Cost centers,Profit centers,Investment centers,Learning Objective 3,Develop performance measuresand use them to monitorthe achievementsof an organization.,Developing Performance Measures,Good performance measures willrelate to the goals of the organization.balance long-term and short-term concerns.reflect the management of key actions and activities.be affected by actions of managers and employees.be readily understood by employees.be used in evaluating and rewarding key personnel.be reasonably objective and easily measured.be used consistently and regularly.,Nonfinancial Measuresof Performance,These measures include averagespeed of answer, abandon rate,and application processing time.,AT&T Universal Card Services uses18 performance measures for itscustomer inquiries process.,Nonfinancial Measuresof Performance,Financial measures are often laggingindicators that arrive too late.,Often the effects of poor nonfinancialperformance do not show up in thefinancial measures until considerableground has been lost.,Monitoring andReporting Results,At all points in the planning and control process,it is vital that effective communication existsamong all levels of management and employees.,Feedback and learning are at the centerof the management control system.,A Successful Organization and Measures of Achievement,ORGANIZATIONAL LEARNINGTraining time, Turnover, Staff satisfaction score,BUSINESS PROCESS IMPROVEMENTCycle time, Defects, Activity costs,CUSTOMER SATISFACTIONMarket share, Survey scores, Complaints,FINANCIALSTRENGTHProduct profitabilityEBIT,Learning Objective 4,Explain the importance ofevaluating performance andhow it impacts motivation, goalcongruence, and employee effort.,Goal Congruence, Managerial Effort, and Motivation,Managerial effort must accompanygoal congruence.,Goal congruence is achieved whenemployees, working in their ownperceived best interests, make decisions that help meet theoverall goals of the organization.,Goal Congruence, Managerial Effort, and Motivation,Managerial effort is exertiontoward a goal or objective.,Supervising,Planning,Thinking,Goal Congruence, Managerial Effort, and Motivation,Motivation is a drive for some selected goal.,It createseffort.,It createsaction towardthat goal.,Learning Objective 5,Prepare segment incomestatements for evaluating profitand investment centers usingthe contribution margin andcontrollable-cost concepts.,Controllability and Measurement of Financial Performance,Management control system,Controllable costs,Uncontrollable costs,Controllable events,Uncontrollable events,Controllability and Measurement of Financial Performance,Controllable costs include all costs that amanagers decision and actions can influence.,An uncontrollable cost is any cost thatcannot be affected by the management ofa responsibility center within a given time span.,Segments,Segments are responsibility centers forwhich a company develops separatemeasures of revenues and costs.,Retail Grocery Company,Contribution Margin,Managers may quickly calculate any expectedchanges in income by multiplying increases indollar sales by the contribution margin ratio.,The contribution margin is especially helpfulfor predicting the impact on income ofshort-run changes in activity volume.,Learning Objective 6,Use a balanced scorecard torecognize both financial andnonfinancial measures ofperformance.,The Balanced Scorecard,A balanced scorecard is a performancemeasurement and reporting systemthat strikes a balance betweenfinancial and operating measures.,It links performance to rewards.,It gives explicit recognition to thediversity of organizational goals.,The Balanced Scorecard,What are key performance indicators?,They are measures that drive the organization to achieve its goals.,Key performance indicators:,The Balanced Scorecard,The scorecard measures an organizationsperformance from four key perspectives:,Financial,Internalprocesses,Customers,Employee growthand learning,Learning Objective 7,Measure performance againstquality, cycle time, andproductivity objectives.,Quality Control,Quality control is theeffort to ensure thatproducts and servicesperform to customerrequirements.,Annual award forbeing #1 in totalcustomerservice.Congratulations!,Cost of Quality Report,Prevention,Internal failure,Appraisal,External failure,Cost of Quality Report,Prevention costs are the costs incurred toprevent the production of defectiveproducts or delivery of substandard services.,Appraisal costs are the costs incurred toidentify defective products or services.,Cost of Quality Report,Internal failure costs are the costs of defectivecomponents and final products or servicesthat are scrapped or reworked.,External failure costs are the costs caused bydelivery of defective products or servicesto customers, such as field repairs,returns, and warranty expenses.,Quality-Control Chart,The quality-control chart is a statisticalplot of measures of various productdimensions or attributes.,This plot helps detect process deviationsbefore the process generates defects.,Quality-Control Chart,Six Sigma,What is six sigma?,It is an analytical method aimed at achievingnear-perfect results on a production line.,It has broadened into a general process todefine and measure a process, analyze it,and improve it to minimize errors.,Control of Cycle Time,Cycle time, or throughput time, is the timetaken to complete a product or service, orany of the components of a product or service.,The longer a product or service is inprocess, the more costs it consumes.,Control of Productivity,Productivity is a measure ofoutputs divided by inputs.,Productivity measures vary widelyaccording to the type of resourcewith which management is concerned.,Control of Productivity,How should outputs andinputs be measured?,Labor-intensive organizations areconcerned with increasing theproductivity of labor, so labor-based measures are appropriate.,Control of Productivity,Highly automated companies are concernedwith machine use and prod