Module 9 Responsibility Accounting and Decentralization

In this episode our podcast explores centralized versus decentralized organizational structures, examining their advantages and disadvantages. It details management control systems, emphasizing the importance of strategic and daily decision-making. We further analyze responsibility accounting, differentiating between various responsibility centers (cost, revenue, profit, and investment centers) and the implications for performance evaluation. Finally, we discuss transfer pricing, outlining different approaches and their effects on profitability.