Responsibility Accounting & Performance Measurement

Managerial accounting tools of responsibility accounting and other performance measures related to decentralization.

What you'll learn

Managerial accounting concepts
Responsibility accounting system and how it can improve performance
How to define and apply direct and indirect expenses
How to allocate indirect expenses using different activity basis
Steps to create a departmental income statement
How to put together a forcasted departmental income statement
How to calculate and interpret return on investment (ROI)

Requirements

Understanding of basic accounting terms

Description

Responsibility accounting & performance measures.

We will describe the concept of decentralization, how it applies to businesses, and the pros and cons of a more decentralized organization from a centralized one.

The course will cover general managerial accounting concepts necessary to study responsibility accounting, comparing and contrasting managerial accounting and financial accounting.

We will explain what a responsibility accounting system looks like and the benefits of a responsibility accounting system.

The course will discuss the categorization of costs between direct costs and indirect costs and why this categorization between direct and indirect is useful for reporting financial data by department.

We will describe the problems with allocating indirect costs to the proper departments and explain various methods for allocating indirect costs.

The course will describe what a departmental income statement is and how to create a departmental income statement.

We will explore what a forecasted departmental income statement is and put together a forecasted departmental income statement.

The course will discuss other performance measures like return on investment (ROI) and a balance scorecard.

We will also complete a comprehensive problem using preformatted Excel worksheets and step by step instructional videos.

Who this course is for:

Accounting students
Business owners & professionals
Anyone who whats to learn accounting