Page 44 - Managerial Accounting-MGT 145
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Module 9: Performance Evaluation
This unit describes how businesses use
Managerial Accounting to evaluate company
performance – for the entire company, their
departments, and their individual employees.
How do you evaluate the productivity of each
division manager in a decentralized company?
How well does each division use the company's
assets to create profits?
Responsibility Accounting assumes someone is
responsible for every cost the company incurs.
They often base the compensation they give their
managers on the financial performance of the
divisions they manage.
We will consider the issues that Game Products
encounters when it evaluates the performance of
three divisional managers who oversee sporting
goods, board games, and computer games.
