Kế toán, kiểm toán - Chapter 12: Responsibility accounting, quality control, and environmental cost management

Chapter 12Responsibility Accounting, Quality Control, and Environmental Cost ManagementResponsibility AccountingResponsibility accounting is used to measure the performance of people and departments to foster goal congruence.Responsibility CentersA subunit in an organization whose manager is held accountable for specified financial results.Responsibility Centers Cost Center Segment has control over the incurrence of costs.The Paint Departmentin an automobile plant. Revenue Center Segmentis responsiblefor the revenue of a unit.The ReservationsDepartment of an airline.Responsibility Centers Profit Center Segment has control over both costs and revenues.Company-owned restaurant in a fast-food chain. Investment Center Segment has control over profits and invested capital. A division of alarge corporation.Performance ReportsCost AllocationThe process of assigning the costs in the cost pool to the cost objects is called cost allocation or cost distribution.Cost Allocation BasesAn allocation base is a measure of activity, physical characteristic, or economic characteristic that is associated with the responsibility centers, which are the cost objects in the allocation process.Behavioral Effects of Responsibility AccountingInformationversusBlameControllabilityMotivatingDesiredBehaviorSegmented ReportingSegmented reporting refers to the preparation of accounting reports by segment and for the organization as a whole.A segment is any part or activity of an organization about which a manager seeks cost, revenue, or profit data. Segmented ReportingDivisions•Units•Aloha Hotels and ResortsOahu DivisionMaui DivisionWaikiki Sands HotelDiamond Head LodgeWaimea Beach ResortSegmented ReportingKey Features of Segmented ReportingContribution format.Controllable versus uncontrollable expenses.Segmented income statement.Cost of QualityQuality costs include the follows:Prevention costs,Appraisal costs,Internal failure costs, andExternal failure costs.Cost of QualityThe opportunity cost of lost sales and decreased market share can represent a significant hidden cost.