管理会计（第10版） 课件 Chapter 11 Measuring divisional performance

Chapter11MeasuringdivisionalperformanceManagementAccountingforDecisionMakersTenthEditionLEARNINGOUTCOMESYoushouldbeableto:IdentifythemajormethodsofmeasuringtheperformanceofoperatingdivisionsanddivisionalmanagersandassesstheusefulnessofsuchmethodsDiscussthepotentialadvantagesanddisadvantagesforabusinessofadoptingadivisionalstructureExplaintheincreasingimportanceofnon-financialmeasuresinmanagingabusinessandhowtheymaybeusedfordecision-makingpurposesDescribetheproblemsofdeterminingtransferpricesbetweendivisionsandoutlinethemethodsusedinpracticeTypesofresponsibilitycentresInvestmentcentresProfitcentresCostcentresSavillsplcSavillsNorthAmericaSavillsUKSavillsEuropeSavillsAsiaPacificSavillsInvestmentManagementSource:Savillsplc,savills.co.uk,accessed26October2016.Figure11.1TheorganisationalchartforSavillsplcFigure11.2AdvantagesofdivisionalisationManagementdevelopmentAdvantages

of

divisionalisationManagementmotivationStrategicrolefortopmanagersSpecialistknowledgeExploitingmarketinformationTimelydecisionsCompetitionbetweendivisions

Management‘perks’

Increasingcosts

Goal

conflict

Riskavoidance

DisadvantagesofdivisionalisationFigure11.3DisadvantagesofdivisionalisationHouseholdappliancesdivisionalincomestatementforlastyear£m980(490)490(130)360(150)210

(80)130

Variableexpenses

ContributionControllabledivisionalfixedexpenses Controllableprofit

Non-controllabledivisionalfixedexpenses

DivisionalprofitbeforecommonexpensesApportionedcostofcommonexpensesDivisionalprofitfortheperiodSalesrevenueSource:Drury,C.andEl-Shishini,E.(2005)DivisionalPerformanceMeasurement:AnExaminationofPotentialExplanatoryFactors,CIMAResearchReport,August,p.32.405030201004480–56–1011–1516–2021–25Frequency%26–3030+Costofcommonresourcesasa%ofdivisionalsales44.429.118.84.30.90.91.7Figure11.4Commoncostsasapercentageofdivisional

annualsalesrevenueReturnoninvestment(ROI)ROI=

DivisionalprofitDivisionalinvestment(assetsemployed)

×100%multipliedbyequalsReturnoninvestmentDivisionalprofit

DivisionalsalesrevenueDivisionalsalesrevenue

DivisionalinvestmentFigure11.5ThemainelementsoftheRIratioResidualincomeAdivisionproducedaprofitof£100,000andtherewasadivisionalinvestmentof£600,000withacostoffinancingthisinvestmentof15percentayear.£Divisionalprofit100,000Chargeforcapitalinvested

(15%×£600,000)

(90,000)Residualincome

10,000ComparingperformanceSimilarbusinesseswithinthesameindustryPreviousperformanceofthedivisionOtherdivisionswithinthebusinessBudget(target)performanceSomebasesforcomparisonDivisionalperformancemeasurementusingEVA®

EVA®

=NOPAT−(R×C)

Where:NOPAT=netoperatingprofitaftertaxR=requiredreturnsofinvestors

(thatis,costoffinancing)C=capitalinvested

(thatis,thenetassets)AssessmentofperformanceObjectivesoftransferpricingOptimisingprofitsofthebusinessAllocatingdivisionalresourcesIndependenceofdivisionsTaxminimisationFigure11.6ObjectivesoftransferpricingSelling

divisionBuying

divisionMarketpriceVariablecostFullcostNegotiatedpriceFigure11.7TransferpricingmethodsDivision1Division2ExternalsuppliersExternalcustomersExternalcustomersDivisionalisedbusinessFigure11.8RelationshipbetweendivisionsandtheexternalmarketNon-financialmeasuresofperformanceProduct/servicequalityStafftrainingandmoraleResearchanddevelopment(R&D)achievementSomeofthemainareasinclude:EnvironmentalandsocialconcernsMarketshareFigure11.9Importanceattachedtovariousnon-financialmeasuresbyma