The following learning objectives for this chapter map to the curriculum design for our online university-level courses. These courses are offered through Utah State University, and result in the awarding of up to 6 hours of highly transferrable college credit. To learn more, check out the classroom link.

 

Concepts in responsibility accounting and management by exception.

Differentiate between centralized and decentralized decision making business structures.

Define responsibility centers and concepts of responsibility accounting.

Distinguish between cost centers, profit centers, and investment centers.

How is return on investment (ROI) calculated?

What is a performance report and how does it align with units of responsibility?

Define traceable fixed costs.

Define common fixed costs.

Define the concept of management by exception.

 

Using flexible budgets to adapt outcome assessments to variable scenarios.

Differentiate between a flexible budget and a static budget.

Be able to construct a flexible budget, and demonstrate how this interfaces with performance evaluation.

 

Developing and using standard costs.

What is a standard cost, and how is it determined?

Discuss considerations necessary in the establishment of standards.

Describe different levels of standards and the pros and cons of each.

 

Traditional variance calculations for monitoring cost and efficiency.

What is a variance?

Be able to calculate and explain material, labor, and overhead variances.

When should variances be investigated?

 

The balanced scorecard approach to measuring business performance.

Describe the balanced scorecard concept of performance evaluation.