-        he ensure that each department are toward same overall goal

(a)  

-        managers strive to achieve goal of top management

(a)  

-        - alignment. Same. Oneness.  Activity that brings together. Different department into one goal

(a)  

-        Concepts & tools Used by managers to measure performance of people & department to foster goal congruence

-        everone is responsible sa kani kanilang responsibility

-        integral part of reporting process

(a)  

basis of responsibility-accounting system is the designation of (a)  

(a)   in org whose manager is held accountable for specified financial results of subunit activities

-        Dept whose manager is held accountable for cost incurred while accomplishing depts org function @ specified level of performance

-        minimize cost

-        ex. painting dept in automobile plant & supply-chain management dept of online retailers

(a)  

-        Manage of subunit is held accountable for revenue generated by subunit

-        He is also accountable for timing of rev received, mix of products & service sold, disc awarded, & creditworthiness of customers

Ex. Reservations department of an airline & advertising sales dept of mobile app developer

(a)  

-        Org subunit whose maanger is held accountable fo profit in short accountable sya sa both rev & cost

-        Managers has ability & responsibility to balance conflicting opportunities to maximize profit for orgs

-        Generates profit

(a)  

-        Accountable for subunit’s profit & return on invested capital used by subunit to generate profit

-        Decides whether the profit will be use as bonus, reinvested in research & development, expansion, distributed to shareholders

(a)  

-        Shows budgeted & actual amts & variances of these amts

-        Help managers to control org ope. Effectively

(a)  

-        benchmark to compare actual rev, exp, & profit

(a)  

-        difference bet Actual & budgeted. Broken down to smaller components to help management pinpoint responsibility & diagnose performance

(a)  

cost to be allocated

(a)  

object where you assign cost

(a)  

process of assigning cost

(a)  

base use to allocate cost pool to cost objects

(a)  

-        use to distribute cost to responsibility centers

-        lagging may alloc base for ech cost pool

-        measure of activity, physical charac, or economic charac associated w/ responsibility centers

-        should have charac in cost object that reflect the incurrence of cost

(a)  

cost allocation base is also known as

(a)  

a responsibility accounting system that focus on financial performance measures of cost, revenue, & profit

(a)  

this cost system focus on activities since all cost incur are due to activities

(a)  

Use ABC system to associate activities that drive the cost

it also use nonfinancial measures of ope to employ (a)  

-        cost & activities are studied to eliminate non-value-adding activities

(a)  

-        preparation of accounting reports by segment & for organization as a whole

(a)  

-        Not traceable per segment pero pede mo iaallocate w/ highly arbitrary allocation base pero delicates kaya wag na hahahah

(a)  

Format where it shows Sales less variab expenses = contrib margin

(a)  

-        Income statement for whole & for major segments

(a)  

- Uses ABC to determine how serving customers affects activities to be performed & cost to be incur

(a)  

under this management the goal is to focus on continually improving each activity

(a)  

This focus on key acivities that org engages

(a)  

-        Significant cost element in any manu. Process (labor-intensive or highly automated)

-        Focus ay purchasing performance (total raw-material cost, deviations bet. Actual & budgeted material prices, quality of raw materials, delivery performance of vendors

(a)  

-        Significant investment for manu or distrib company

-        Usually gumagamit ng JIT production  para low inventory pero binebase pa rin sa inventory control

(a)  

-        include ave value of inventory, ave amt of time inventory are held, inventory turnover mesures (ratio of inventory value to sales revenue)

(a)  

-        maximize long-run profit thru proper management of org-al bottleneck or constrained resources. Key idea is to identify what constraints to prevent from operating at max capacity

(a)  

-        Competitive market demands adhere to quality of standards for raw mats, manu. Components, products & services sold

-        Need din icheck yung mga nonfinancial data to assess effectiveness in maintaining product & service quality

(a)  

-        high quality bay ug mga product & services mo sa tingin ng customers

-        Performance measure includes # of customer complaints, # of warranty claims, # of products returned, cost of repeat service visit

(a)  

-        procedures that assess product & services quality before completion (measures defect rates & corrective suggestions are suggested)

(a)  

-        Maganda nga yung product mo pero late delivery naman edi wala rin

-        Measures: % of on-time deliveries, % of orders filled, delivery cycle time, manufacturing cycle time

(a)  

-        ave time bet. Order & delivery

(a)  

- total amt of production time required per unit

(a)  

-        - ilan yung # of units produced in a given time period

(a)  

amt of time actually worked on after production rocess begins (value-added time +non-value-added time) mas mataas mas maganda

(a)  

-        dahil sa global competition nagkakaron na ng need to improve & innovate

-        the need to developed & introduce the new product to replace an obsolete product

-        new process for more efficient

(a)  

-        widely used method of providing incentive to employees to improve performance in operation

-        incentive system that I formula o share the gains to employees that helped accomplish the improvements

(a)  

-        Measures of financial & nonfinancial outcomes that guide management in making current decisions that will lead to desirable resul in the future

-        Guide to act now positive effect latur

(a)  

-        Measure of final outcome of earlier management decisions

-        Less useful for performance management & control

(a)