Responsibility Accounting and Performance Evaluation

This system may be defined as a system set out to assess or evaluate the performance of each responsibility center and its manager.

What type of system am I?

This is where activities such as planning, directing, and controlled decision-making within an organization mostly small businesses but also for the owner and over the top.

The following responsibility reports used in these centers are:

Cost Center- compares the actual cost and budgeted costs will be compared

Revenue Center- compares actual revenue to the budgeted revenue

Profit Center compares the actual revenue and cost to the budgeted revenue and

cost

• False

• True

Advantages of decentralization such as providing training and improved customer relations.

• TRUE

• FALSE

Providing Feedback, Benchmarking, Communicating Expectations and Motivating Segment Managers are all examples of what type of system?

Which of the following is a KPI and their perspective on that balanced scorecard?

• Customer-Percentage of Sales Return and Percentage of Market Share

• Financial- Cash Flow and Net income

• Learning and Growth -Employee Turnover and Employee Satisfaction

• Internal Business- Defect Rate and Manufacturing Cycle Time

• All of the above

Select the responsibility for the following centers:

   Cost Center

          Revenue Center

      Profit Center

                Investment Center

• accountable for costs only, so the actual cost and budgeted costs will be compared

• accountable for revenues only which will also be compared to the budgeted revenue as well

• accountable for revenue and cost, this center compares the actual revenue and cost to the budgeted revenue and cost

• is accountable for investments, revenue, and cost. It compares the actual profits to the budgeted profits and then measures the return on investment

• None of the above