Understanding the Nature and Purposes of Responsibility Accounting, Decentralization and Transfer Pricing

1. Joy Kenneth Sala Biasong, D.M., Ed.D., Ph.D.
Resource Person

2. Decentralization
 Concepts
 Benefits
 Costs

3. Responsibility Accounting
 Responsibility Centers
 Cost Centers
 Profit Centers
 Investment Centers

4. Cost Centers
 Evaluation of Cost Centers’ Performance
 Use of Budgets in Cost Evaluation
 Responsibility Accounting Reports
 Classification of Costs
Controllable Costs
Direct Costs
( R. Roque)

5. Profit Centers
 Evaluation of Profit Centers’ Performance

6. Investment Centers
 Evaluation of Investment Centers’
Performance
 Residual Income

7. Transfer Pricing
 Methods
Market Price
Modified Market Price
Transfer Price based on Full Cost
Transfer Price based on Variable Cost
Negotiated Transfer Price
Dual Transfer Price
Standard Costs in Transfer Pricing
Accounting Treatment for Intra Company Transfers
( R. Roque)