Unit 9: Performance Evaluation
This unit describes how businesses use managerial accounting to evaluate company performance – for the entire company, their organizational 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.
Completing this unit should take you approximately 4 hours.
9.1: Control Operations in Decentralized Organizations
9.2: Establishing Responsibility Centers
9.3: Segmented Income
9.4: Return on Investment
9.5: Residual Income
9.6: Economic Value Added
9.4: Game Products Inc. Warp-Up