Assignment

Course Name: Management Accounting

Submitted By : Shimu Akter Joya
ID NO : 2213011023
Batch :56 (A)
Topic : Assignment on the topic of Performance Measurement
in Decentralized Organizations Based OnChap-11
Managers in large organizations have to delegate some decisions to those who
are at lower levels in the organizations. This chapter explains how responsibility
accounting system, return on investment (ROI), residual income, operating
performance measures , and the balanced scorecard are used to help control
decentralized organizations.
Performance measurement in decentralized organizations advantages and
disadvantages are:
Advantages:
 Efficiency
 Entrepreneurial Spirit
 Fees top management from day to day
Disadvantages:
 Lack of coordination
 Not understanding overall corporate goals
 Own “Agendas”
Return On Investment :
ROI= Net operating income
Average operating assets
Both operating income and assets used income often “EBIT”