ACTG 2020 Chapter Notes - Chapter 12: International Organization For Standardization, Accounts Receivable, Economy Car
2 May 2017
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Document Summary
Companies increasingly using non-financial indicators of performance, i. e. scrap levels, market share, employee morale. Decentralization in organizations: decentralized organization org. in which decision making is spread throughout, rather than being confined to execs, most large organizations decentralized by necessity. Reports submitted by specific parts/activities of an organization in addition to overall income statement: possible to segment company"s operations in many ways, i. e. geography, store, types of products. Segment reporting: management needs information beyond companywide statements only summary of overall operations. Necessary to know information about different product lines, regions, etc. Need to see if divisions are effectively and efficiently using capacity/resources. Segmented income statements prepared for activities at many levels in a company. Example: segmenting into divisions, then products, then sales territories (i. e. online vs. in store) Helps managers carefully examine trends and results in each segment. Breakdown of levels dependent on what managers want to know.
