...Responsibility Accounting - an accounting information system and a managerial control device that involves: 1) identifying responsibility centers with their corresponding objectives 2) developing measures of achievement of such objectives 3) preparing/analyzing reports of such measures by the responsibility centers Responsibility Center -a sub-unit of an organization, such as a department, division, plant, business process or any segment whose manager has authority over, and is responsible and accountable for a specific or defined group of activities. 1) Cost Center - a responsibility center where a manager has control over the incurrence of costs but not over revenues or investments. Example: Maintenance Department 2) Revenue Center- the manager has control over revenues. Example: Sales Department 3) Profit Center- the manager has control over both costs and revenues. Example: A branch 4) Investment Center- the manager has control over both costs and revenues, as well as over investment in plant and equipment, receivable, inventory and other assets. 5) Service Center- usually operated as a cost center. It exists primarily and sometimes solely to provide specialized support to the other segments or sub-units of the organization. Organization Structures 1) Centralized organization- top management makes most decisions and controls most activities of the organizational segments from...
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...CHAPTER 10 Budgetary Control and Responsibility Accounting ASSIGNMENT CLASSIFICATION TABLE Learning Objectives 1. Describe the concept of budgetary control. Evaluate the usefulness of static budget reports. Explain the development of flexible budgets and the usefulness of flexible budget reports. Describe the concept of responsibility accounting. Indicate the features of responsibility reports for cost centers. Identify the content of responsibility reports for profit centers. Explain the basis and formula used in evaluating performance in investment centers. Explain the difference between ROI and residual income. Questions 1, 2 Brief Exercises Do It! Exercises 1 A Problems B Problems 2. 3, 4, 5 1, 2 1, 2, 8, 10 3A 3B 3. 6, 7, 8, 9, 10, 11, 12 3, 4, 5 1, 2 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 1A, 2A, 3A 1B, 2B, 3B 4. 13, 14, 15, 16, 17, 18, 24 19 6 13 6A 6B 5. 9, 11, 14 6. 20, 21 7 3 15, 16 4A 4B 7. 22, 23, 24 8, 9, 10 4 16, 17, 18, 19 5A 5B *8. 25, 26 11, 12 20, 21 7A 7B *Note: All asterisked Questions, Exercises, and Problems relate to material contained in the appendix to the chapter. Copyright © 2012 John Wiley & Sons, Inc. Weygandt, Managerial Accounting, 6/e, Solution Transparencies (For Instructor Use Only) 10-1 ASSIGNMENT CHARACTERISTICS TABLE Problem Number 1A Description Prepare flexible budget and budget report for manufacturing...
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...Responsibility Accounting Responsibility Accounting focuses on providing financial information useful in evaluating the efficiency and effectiveness of managers or department heads on the basis of the financial performance directly under their control. It is a system that collects, summarizes, and reports accounting data relating to the responsibilities of individual managers; in a sense it holds managers accountable for their actions in their individual departments. As long as certain conditions exist, Responsibility Accounting can be used in every level of management. These condition are: Cost and revenue can be directly associated with the specific level of management responsibility; the cost and revenues can be controlled by employees at the level or responsibility with which they are associated; budget data can be developed for evaluating the manager’s effectiveness in controlling the costs and revenues. Responsibility Accounting is especially effective in decentralized companies where segments are used to identify separate areas of responsibility. These segments are known as responsibility centers and are again broken down into several sectors. The sectors are cost center, profit center, and investment center. These sectors indicate where the responsibility of the individual manager lies, and on what basis the manager will be evaluated. A cost center is a segment that incurs costs and expenses, but does not produce revenue. The success of management in a cost center...
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...budgetary control; and II. responsibility accounting Preview of Chapter 10 Budgetary Control and Responsibility Accounting Budgetary Control Budget report Control activities Reporting System Static Budget Reports Examples Uses and limitation Flexible Budgets Why flexible budgets Development Case study Reports Responsibility Accounting Controllable vs noncontrollabe Performance Evaluation Reporting System Types of Responsibility Centers Cost Centers Profit Centers Investment Centers The content and organization chart of Chapter 10 Learning Objectives Describe the concept of budgetary control. Evaluate the usefulness budget reports. of static Explain the development of flexible budgets and the usefulness of flexible budget reports. Describe the concept of responsibility accounting Indicate the features of responsibility reports for cost centers. Identify the content of responsibility reports for profit centers. Explain the basis and formula used in evaluating performance in investment centers Learning Objectives Describe the concept of budgetary control. Evaluate the usefulness budget reports. of static Explain the development of flexible budgets and the usefulness of flexible budget reports. Describe the concept of responsibility accounting Indicate the features of responsibility reports for cost centers. Identify the content of responsibility reports for profit centers. ...
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...AICPA Code of Professional Conduct Teresa K. Grimm 376 September 2, 2013 Sylvia Baughey AICPA Code of Professional Conduct I will be describing what the main reason of having the AICPA Code of Professional Conduct and why it’s the foundation of the ethical reason in the accounting world. I will also try to explain what I believe to be the most three important principles and why they are the most important. The main reason behind the AICPA Code of Professional Conduct is to uphold the standards and values of behavior in the community for all involved in the accounting profession. All of the principles of the AICPA Code are aspirational statements that form the main foundation for the Code’s enforceable rules. (Mintz & Morris, 2011) There are six principles to the code of professional conduct and they are, the public interest, objectivity and independence, due care, integrity, responsibility and scope and nature of services. (AICPA, 2013) When a member is using the Principles it will help guide him or her in a performance of his or her professional responsibilities and the call for an unyielding commitment to honor the public trust, even if it is at a sacrifice of personal benefits. (Mintz & Morris, 2011) I think the most three important principles of the Code would be integrity, the public interest and due care. Integrity is so important when a CPA is working with the public, because the CPA needs to gain the trust and confidentiality of his or her...
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...The individual will be responsible to work beside an expierenced Auditor and participate in an audit. The person's ability to comprehend and execute will determine the level of responsibility they will acquire and how much they will learn. They will participate in the planning stage, fieldwork and wrap-up of audit engagements. Minimum GPA: 3.3 Desired Majors (i.e. Accounting, Computer Science, Finance, Marketing, etc.): Desired is Accounting, or Finance Please indicate any traits, qualities or characteristics which the candidate may need in order to “fit” within your department’s industry, culture or work environment: The individual should have a desire to learn and be willing to work with different people throughout the department. Our department is made up of driven individuals who work hard, but we work well together because of mutal respect for one another. The person who works with us should be eager to learn, exhibit a good personality and willing to work on various assignments. Please list any academic/coursework requirements that the candidate must have completed: Completion of two years college course work with a major in Accounting or Finance. Please describe any additional areas that the intern(s) will gain exposure to in addition to the daily responsibilities (i.e. special projects): Depending on the Intern's ability to grasp assignements will determine if they are...
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...LBJ to maintain an internal audit function as a means of providing all levels of management with information to control the operations, to provide the Board of Directors with information necessary to discharge its responsibilities and to assist management in reaching a conclusion about the overall effectiveness of the system of internal control. First, I will establish the legal requirement needed and the importance of internal controls for an organization. Then I will review the current policies and establish better internal controls for each area of concern. Once these policies have been instituted by the LJB Company, they should be ready to proceed with their plan to go public. Internal control requirements When the company decides to go public the requirements listed below will prove to be very helpful. It is the responsibility of top management to make it clear that the organization values integrity and that unethical activity will not be tolerated. This component is often referred to as the “tone at the top.” Control is most effective when only one person is responsible for a given task. There are many accounting regulations required by a public company. All accounting reports must follow the FASB and SEC guidelines. However, the newest accounting guidelines fall under the Saranes-Oxley...
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...Of the six Principles in the AICPA Code (Responsibilities, The Public Interest, Integrity, Objectivity & Independence, Due Care, and Scope & Nature of Services) I believe the three most important are Responsibility, Integrity and Due Care. While most of the principles are inter-related it is the customer/ public that must be taken care of first and not our personal interests. To protect the client we must first understand the responsibilities as a CPA. “The overriding responsibility of CPAs is to exercise sensitive and moral judgments in all activities. “ In meeting our obligations it is important to realize that our morals and ethics should be a huge factor in the way we conduct business and treat our clients (Mintz & Morris, 2011, Chapter Chapter 1). Integrity “recognizes that the public trust is served by (1) being honest and candid within the constraints of client confidentiality; (2) not subordinating the public trust to personal gain and advantage; (3) observing both the form and spirit of technical and ethical standards; and (4) observing the principles of objectivity and of due care.” As professionals we must have the clients trust to fully do our jobs. If the client doesn’t trust you as a professional then how can they trust your work product. Even the perception of wrongdoing can lose all trust. CPAs must be able to not only always follow the rules, but also the appearance of always doing the correct thing (Mintz & Morris, 2011, Chapter Chapter...
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...a summary of the key insights that you gained from the readings and how these insights were applied to the simulation. {Take as much space as you need}-Before we had the first meeting, it was discussed in the Facebook group chat that we must each come up with a suggestion for the company name. This has helped us save time during the actual meeting, therefore having more time for the remaining decisions.-All team members participated in the organization of the team, the activities involved were as following: naming the company, assigning responsibilities to each team member, Establishing personal goals, team norms, and decision-making process and deciding on the market research size and cost.-The responsibilities were carefully studied and discussed, each responsibility was assigned the team member most experienced in the field. Eg: Brian Glennon had previous experience of accounting therefore he was assigned the responsibility of VP-Accounting and Finance.-From the readings and information provided to us in the tutorial we have realized the importance of pricing and how it can have an immense impact on how successful our company becomes. Even though this decision was not due until quarter two, we knew in advance to what aspects we should pay attention most. | Declaration of Authorship and Attendance at Team Meetings We declare that all...
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...Effect of Unethical Behavior Article Analysis ACC/291 December 23, 2012 Angela Giattino Effect of Unethical Behavior In late 2009 most of America, along with the company that I work for was suffering from an economic downturn. The future of company coming out of this unfortunate event was slim to none. Our company is a car prep company that prepares vehicles for brochure and commercial still and video shoots. Most of our clients are automotive manufacturers, and our largest client at that time was General Motors. General Motors was in the midst of filing for bankruptcy and the government stepped in to bail the large corporation out of its financial crisis. Many companies that worked with General Motors walked away from that business and took a loss. Our company on the other hand, took the wildest roller coaster ride that not only hurt us but also saved us. During this time the company laid-off many employees and stopped paying its debt for over a year just to stay afloat, including our lease payments for the building we occupy. One would think that the landlord would have thrown the company out of the building. Rather worked out an agreement with the owner of the company to allow him to get back on his feet with the terms that he would repay any monies when the company was once again stable. When both the owner of the business and the landlord realized that the company was in bad shape, the landlord agreed to cut the outstanding balance of more...
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... |Principles of Internal Control |How it Works |Example | |Establishment of responsibility |Designating one person to a task. |If one person is in charge of a bank deposit, they are held | | | |responsible for putting the correct amount in the bank, the | | | |addition of the money, and if it is wrong (short/long), there is| | | |no question of who is responsible for the mistake. | |Segregation of duties |Divide the duties among employees and be consistent that they |Checking in merchandise, this person would know that they are | | |know the responsibility of this duty and only that person |held responsible to know what is coming in the door and that | | |performs this duty. ...
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...only report the positive facts instead of the full truth is just as bad as covering up. For instance, no mention is made that the debt to total assets ratio has increased from 35% to 55%, that inventories are up 89%, and that while the current ratio improved, the acid-test ratio fell from 1:1 to 0.5:1 Weygandt, J., Kimmel, P., & Kieso, D. ,2011). So by only reporting what he chooses, President McClintock has left himself open for scrutiny in the future. As the Controller it is my responsibility to speak to President McClintock and let him know that although the report is correct, the presentation is wrong; plus I feel it is unethical to report only the positives without showing the negatives. As for Jeremy Phelps; he does have a responsibility to report what is given to him, but he has to know that he is still responsible for delivering the message and has to believe in it for it to be a sell to future investors. References Weygandt, J., Kimmel, P., & Kieso, D. (2011). Managerial Accounting, 5th edition. US: John Wiley and...
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...Responsibility charting (RACI) What Is RACI ? Responsibility Charting Is a technique for identifying functional areas, key activities, and decision points where ambiguities exist; differences can be brought into the open and resolved through team effort. The approach enables management to actively participate in the process of systematically describing activities, decisions that have to be accomplished, and to clarify the responsibility that each plays in relation to those activities and decisions. 2 Objectives/Benefits • Assist natural work teams in charting roles and responsibilities in a consistent manner • Assist natural work teams with development of implementation tool kits • Clarify individual/departmental roles and responsibilities • Identify accountabilities • Eliminate misunderstandings, encourage teamwork • Reduce duplication of effort • Establish “consults” and “informs” resulting in better communication 3 Critical Issue Summary Opportunity Roles and Responsibilities Accountability • To clarify Responsibilities • To identify authority Job responsibility • To empower employees with authority to do it Role of middle manager • To bring up to speed with organization structure Approval 4 • To better understand • To improve communications • To reduce uncertainty of multiple reporting Guidelines • Remember new culture philosophy when defining roles and responsibilities ! Eliminate “checkers...
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...stay in her current position as manager at her current pay rate and keep pursuing Ralph about getting her salary on par with what it should be; in other words to “accept things the way they are” and support S&J’s policies. Jane’s second option is to leave her position at S&J in pursuit of a career that will compensate Jane with the salary that matches her responsibility and skill level; it would behoove Jane to have a job to transition into prior to leaving her position at S&J. Jane’s final and best option would be to hire a lawyer in order to file a lawsuit against S&J for violation of the Equal Pay Act established in 1963. “The Act prohibits sex based discrimination in rates of pay for men and women working in similar positions”. The fact that Bob Thomas is making more than Jane while at a lower position but similar job description is the very reason the Equal Pay Act was established; to protect people like Jane from sexist organizations like S&J. The federal government would have a major influence in this case as they are responsible for the enforcement of the Equal Pay Act. Being that Jane is a manager in the accounting department of S&J she has documented and intimate knowledge of the unfair pay situation she has been placed in; with proper legal representation Jane has a very strong case against S&J. References: Byars, L. L., & Rue, L. W. (2011). Human resource management. New York:...
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... 1481 Avila Court Hayward, CA 94544 Cell: (510) 677-0264 OBJECTIVES AND QUALIFICATIONS_________________________________________________________ I am responsible, conscientious, learn very quickly, and have extensive experience working as an Account Executive, working with the public, working with computers, opening and closing a store, and taking on increasing levels of responsibility. I am hard working, trustworthy and enthusiastic, and my previous employers have regarded me as a capable and versatile employee whom they could always count on to take on constantly expanding levels of responsibility. I enjoy the challenges and opportunities for growth that these extra responsibilities have given me. EXPERIENCE_______________________________________________________________ March, 2006 – December 2006 Connell Nissan, KIA, JEEP and Chrysler #2820 Broadway Autorow Oakland, CA Sales Specialist/ Head of Internet Sales • While employed with Connell Nissan, I was exposed to an entirely new field of responsibilities with my vast array of responsibility ranging to be a sales consultant. I’ve seen an abundance of growth in myself. Starting the job with no sales experience, I quickly established myself as an exceptional asset, but the growth didn’t stop there. I’ve continued to strive and perform for my dealership, becoming the best salesperson in my dealership. I’d say this is coming a long way from a...
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