暨南大学管理学院成本与管理会计课件 Chapter12.ppt

Segment Reporting and Decentralization Chapter Twelve Decentralization in Organizations Decentralization in Organizations Cost, Profit, and Investments Centers Cost Center A segment whose manager has control over costs, but not over revenues or investment funds. Profit Center A segment whose manager has control over both costs and revenues, but no control over investment funds. Investment Center A segment whose manager has control over costs, revenues, and investments in operating assets. Responsibility Centers Responsibility Centers Responsibility Centers Learning Objective 1 Decentralization and Segment Reporting A segment is any part or activity of an organization about which a manager seeks cost, revenue, or profit data. A segment can be . . . Superior Foods: Geographic Regions Superior Foods: Customer Channel Keys to Segmented Income Statements Identifying Traceable Fixed Costs Traceable costs arise because of the existence of a particular segment and would disappear over time if the segment itself disappeared. Identifying Common Fixed Costs Traceable Costs Can Become Common Costs Segment Margin The segment margin, which is computed by subtracting the traceable fixed costs of a segment from its contribution margin, is the best gauge of the long-run profitability of a segment. Traceable and Common Costs Activity-Based Costing Levels of Segmented Statements Levels of Segmented Statements Our approach to segment reporting uses the contribution format. Levels of Segmented Statements Our approach to segment reporting uses the contribution format. Levels of Segmented Statements Levels of Segmented Statements Traceable Costs Can Become Common Costs As previously mentioned, fixed costs that are traceable to one segment can become common if the company is divided into smaller segments. Traceable Costs Can Become Common Costs Traceable Costs Can Become Common Costs Traceable Costs Can Become Common Costs External Reports Omission of Costs Cost