文档介绍：Decentralization, Responsibility Centers, and Transfer Pricing
Centralization and Decentralization Spectrum
High degree of delegation of duties, power, and authority to lower levels of anization
High degree of retention of duties, power, and authority by top management
Decentralized
Centralized
Neither centralization nor decentralization is necessarily a anizational goal!
Decentralization anizations
Benefits of
Decentralization
Top management
freed to concentrate
on strategy.
Lower-level managers
gain experience in
decision-making.
Decision-making
authority leads to
job satisfaction.
Lower-level decision
often based on
better information.
Improves ability to
evaluate managers.
Decentralization anizations
Disadvantages of
Decentralization
Lower-level managers
may make decisions
without seeing the
“big picture.”
May be a lack of
coordination among
autonomous
managers.
Lower-level manager’s
objectives may not
be those of anization.
May be difficult to
spread innovative ideas
in anization.
Decentralization and Segments
A segment is any part or activity of anization about which a manager seeks cost, revenue, or profit data. A segment can be . . .
Quick Mart
An Individual Store
A Sales Territory
A Service Center
Cost, Profit, and Investments Centers
Cost Center
A segment whose manager has control over costs,
but not over revenues or investment funds.
Cost
Cost
Cost
Cost, Profit, and Investments Centers
Profit Center
A segment whose manager has control over both costs and revenues,
but no control over investment funds.
Revenues
Sales
Interest
Other
Costs
Mfg. missions
Salaries
Other
Cost, Profit, and Investments Centers
Investment Center
A segment whose manager has control over costs, revenues, and investments in operating assets.
Corporate Headquarters
Cost, Profit, and Investments Centers
Responsibility
Center
Cost
Center
Profit
Center
Investment
Center
Cost, profit,
and investment
centers are all
known as
responsibilit