tailieunhanh - Lecture Survey of accounting (3/e) - Chapter 15: Performance evaluation

After you have mastered the material in this chapter, you will be able to: Describe the concept of decentralization, distinguish between flexible and static budgets, classify variances as being favorable or unfavorable,. | McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 15: Performance Evaluation Learning Objectives Describe the concept of decentralization. Distinguish between flexible and static budgets. Classify variances as being favorable or unfavorable. Compute and interpret sales and variable cost volume variances. Compute and interpret flexible budget variances. Evaluate investment opportunities using the return on investment technique. Evaluate investment opportunities using the residual income technique. In this chapter, the learning objectives are: Describe the concept of decentralization. Distinguish between flexible and static budgets. Classify variances as being favorable or unfavorable. Compute and interpret sales and variable cost volume variances. Compute and interpret flexible budget variances. Evaluate investment opportunities using the return on investment technique. Evaluate investment opportunities using the residual income . | McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 15: Performance Evaluation Learning Objectives Describe the concept of decentralization. Distinguish between flexible and static budgets. Classify variances as being favorable or unfavorable. Compute and interpret sales and variable cost volume variances. Compute and interpret flexible budget variances. Evaluate investment opportunities using the return on investment technique. Evaluate investment opportunities using the residual income technique. In this chapter, the learning objectives are: Describe the concept of decentralization. Distinguish between flexible and static budgets. Classify variances as being favorable or unfavorable. Compute and interpret sales and variable cost volume variances. Compute and interpret flexible budget variances. Evaluate investment opportunities using the return on investment technique. Evaluate investment opportunities using the residual income technique. An accounting system that provides information . . . Responsibility Accounting Relating to the responsibilities of individual managers. To evaluate managers on controllable items. Responsibility accounting is an accounting system that provides information relating to the responsibilities of individual managers in order to evaluate managers on controllable items. Preparing Flexible Budgets The master budget, sometimes called a static budget, is based solely on the planned volume of activity. Flexible budgets differ from static budgets in that they show expected revenues and costs at a variety of volume levels. Flexible The master budget, sometimes called a static budget, is based solely on the planned volume of activity. Flexible budgets differ from static budgets in that they show expected revenues and costs at a variety of volume levels. Static and Flexible Budgets From the standard cost information, Melrose prepares the following static and flexible budgets. 18,000