Responsibility Accounting & Performance Measurement



Responsibility accounting & performance measures.

We will describe the concept of decentralization, how it applies to businesses, and the pros and cons of a more decentralized organization from a centralized one.

The course will cover general managerial accounting concepts necessary to study responsibility accounting, comparing and contrasting managerial accounting and financial accounting.

We will explain what a responsibility accounting system looks like and the benefits of a responsibility accounting system.

The course will discuss the categorization of costs between direct costs and indirect costs and why this categorization between direct and indirect is useful for reporting financial data by department.

We will describe the problems with allocating indirect costs to the proper departments and explain various methods for allocating indirect costs.

The course will describe what a departmental income statement is and how to create a departmental income statement.

We will explore what a forecasted departmental income statement is and put together a forecasted departmental income statement.

The course will discuss other performance measures like return on investment (ROI) and a balance scorecard.

We will also complete a comprehensive problem using preformatted Excel worksheets and step by step instructional videos.

What Will I Learn?

  • Managerial accounting concepts
  • Responsibility accounting system and how it can improve performance
  • How to define and apply direct and indirect expenses
  • How to allocate indirect expenses using different activity basis
  • Steps to create a departmental income statement
  • How to put together a forcasted departmental income statement
  • How to calculate and interpret return on investment (ROI)

Topics for this course

91 Lessons7h 5m

Section 1: Introduction

1. Introduction9:19
2. PDF – 150 Decentralization0:08
3. 150 Decentralization16:40
4. PDF – 155 Performance Evaluation & Department Classifications0:08
5. 155 Performance Evaluation & Department Classifications5:45
6. Multiple Choice Question 14:48
7. Accounting Comic Break0:15

Section 2: Managerial Accounting Overview

Section 3: Responsibility Accounting System

Section 4: Direct and Indirect Expenses

Section 5: Indirect Expenses Allocation

Section 6: Departmental Income Statements

Section 7: Forecasted Departmental Income Statement

Section 8: Return on Investment (ROI)

Section 9: Balance Scorecard

Section 10: Comprehensive Problem

About the instructors

Demetrius Witting

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14 Courses
1 students


Course Details

  • Level: Beginner
  • Total Hour: 7h 5m
  • Total Lessons: 91
  • Total Enrolled: 0
  • Last Update:


  • Understanding of basic accounting terms

Target Audience

  • Accounting students
  • Business owners & professionals
  • Anyone who whats to learn accounting