ACCTG322 Lecture Notes - Lecture 7: Balanced Scorecard, Transfer Pricing, Contribution Margin
17 Apr 2015
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Objective: decentralization in organizations, segment reporting, responsibility centers, transfer pricing, return on investment, residual income. 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 : an individual store, sales territory, service centre. Superior foods: geographic regions: superior foods corporation could segment its business by geographic regions. Superior foods: customer channel: superior foods corporation could segment its business by customer channel. 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, no computer division means no division manager. Identifying common fixed costs: common costs arise because of the overall operation of the company and would not disappear if any particular segment were eliminated, no computer division, but we still have a company president.
