微观经济学Budgeting and responsibility accountingPPT.ppt

RESPONSIBILITY ACCOUNTING FOR INVESTMENT CENTRES Managers evaluated on: Profitability of the centre Rate of return earned on funds invested Often associated with subsidiary companies The manager of an investment centre can control or influence investment funds PowerPoint presentation by Dr Anne Abraham, University of Western Sydney * Return on investment (ROI) The manager is usually evaluated on return on investment (ROI) ROI only includes factors controllable by the investment centre manager PowerPoint presentation by Dr Anne Abraham, University of Western Sydney * Controllablemargin Averageoperating assets Returnon investment ÷ = Responsibility report Responsibility reports include budgeted and actual ROI below controllable margin Report is affected by extent of manager’s responsibility Investment centres are independent of operations, so fixed costs are controllable and included ROI can be affected by valuation of assets and which profitability measure is used PowerPoint presentation by Dr Anne Abraham, University of Western Sydney * Responsibility reportcontinued PowerPoint presentation by Dr Anne Abraham, University of Western Sydney * Budget Actual Difference Sales $1 200 000 $1 150 000 $50 000 U Variable costs Cost of sales 500 000 490 000 10 000 F Selling admin 160 000 156 000 4 000 F Total 660 000 646 000 14 000 F Contribution margin 540 000 504 000 36 000 U Controllable fixed costs Cost of sales 100 000 100 000 0 Selling admin 80 000 80 000 0 Other fixed costs 60 000 60 000 0 . Total 240 000 240 000 0 . Controllable margin $ 300 000 $ 264 000 $36 000 U Return on investment 15% 13.2% 1.8% U a b c a $300 000 ? $2 000 000 b $300 000 ? $2 000 000 c $300 000