August 2011
Beginner to intermediate
750 pages
26h 1m
English
Content preview from Managerial: Accounting
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
10
DECENTRALIZATION AND PERFORMANCE EVALUATION
After studying this chapter, you should be able to meet the following learning objectives (LO).
- Identify the difference between a cost center, a profit center, and an investment center. (Unit 10.1)
- Prepare a segment margin income statement and evaluate a segment's financial performance. (Unit 10.2)
- Evaluate an operating segment or project using return on investment. (Unit 10.3)
- Evaluate an operating segment or project using residual income and economic value added. (Unit 10.4)
- Calculate the minimum transfer price between divisions that maximizes corporate income. (Appendix)
The Pitch
Monica Waltrip, vice president of Centex Yarns' Nylon Fibers division, answered the telephone. It was CEO James Cameron. “Monica, I just got the latest corporate income statement. Your division is showing a loss for the third straight year. I think I've given you plenty of time to turn things around, so we need to meet at 1:00 to make some hard decisions about the division's viability.” All Monica could manage to reply was, “I'll be there.”
Monica knew she was going to be in the hot seat. Yes, the division had shown a loss on the corporate income statement for the past three years, but she and her team had worked hard to improve operations. Sales were ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.