About This Chapter
Reporting Systems & Structures in Accounting - Chapter Summary and Learning Objectives
Reporting systems are ways to collect and analyze accounting data to facilitate a more efficient decision making process. Managers often rely on these reporting systems as a guide in their decisions. In this chapter you'll learn:
- What segment reporting is and its functions
- What role segment margin plays in decision making
- The benefits and drawbacks of responsibility accounting
- What are traceable and common fixed costs?
|Segment Reporting Basics & Tools||Learn segment reporting basics, segmented income statement, traceable and fixed cost.|
|Segment Margin & Decision-Making in Accounting||Understand segment margins, and the need for proper cost assignment.|
|Responsibility Accounting: Benefits & Limitations||Explain responsibility accounting and describe benefits and drawbacks.|
|Investment Center Evaluation: Formula & Residual Income||Understand performance evaluation at investment centers. Apply for formula for calculating return on investment.|
|The Balanced Scorecard as a Strategic Management System||Learn a performance appraisal technique with the balanced scorecard.|
1. Segment Reporting Basics & Tools
Segment reporting allows management to assess the profitability of divisions or product lines. In this lesson, you will learn how to prepare a segmented income statement and use the information to make decisions.
2. Segment Margin & Decision-Making in Accounting
Businesses must determine if it is profitable to keep operating different segments. In this lesson, you'll learn how analyzing the segment margin assists businesses in making this decision.
3. Responsibility Accounting: Benefits & Limitations
Unlike other accounting systems which focus on departments or divisions, responsibility accounting tracks the performance of each individual. As you might imagine, this has unique advantages and disadvantages.
4. Investment Center Evaluation: Formula & Residual Income
Investment centers are related to other responsibility centers, but their unique makeup means that there has to be a different way of evaluating them. In this lesson, we will learn how to do that.
5. The Balanced Scorecard as a Strategic Management System
Executives of organizations need summary information to help them to make decisions. Learn about the balanced scorecard, which can be used as a strategic management system, and how it's used.
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