Responsibility Accounting

esponsibility Accounting & Performance Measurement Playlist Links go points in the video: 0:21 Responsibility Accounting System 9:29 Decentralization 26:08 Performance Evaluation & Department Classifications 31:52 Controllable vs. Uncontrollable Costs 36:49 Direct & Indirect Expenses 44:46 Indirect Expenses Allocation 53:46 Allocation of Occupancy Costs 1:09:21 Departmental Income Statement Steps 1:14:32 Example – Departmental Income Statement Steps 1:32:05 Forecasted Departmental Income Statement 1:44:56 Balance Scorecard Managerial Accounting Playlists… 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 video 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 video 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 video 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 video 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.


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