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Class notes

Management Accounting notes

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Complete notes on the following topics for management accounting for RSM222 (Rotman commerce UofT): 1. Performance Measurement 2.Relevant Costing n 3.Capital Budgeting 4.Standard Costing and Variance Analysis 5.Variable and Absorption Costing 6.Budgeting

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Institution
University Of Toronto (U Of T )
Course
RSM222 (RSM222)








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Institution
University of Toronto (U of T )
Study
Finance and Economics Specialist
Course
RSM222 (RSM222)
All documents for this subject (6)

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Uploaded on
December 11, 2025
Number of pages
3
Written in
2025/2026
Type
Class notes
Professor(s)
Scott douglas
Contains
6-12

Subjects

Content preview

WEEK 12
PERFORMANCE MEASUREMENT

Decentralization
Delegating decision making authority to lowerlevel managers

Advantages
Betterlocaldecisions
Faster response to customers
Trainsfuturemanagers
Highermotivation

Disadvantages
Goalincongruence
Lackofcoordination
Suboptimaldecisions
Harder to transfer bestpractices



ResponsibilityCentres
1 CostCentres controls onlycosts

2 ProfitCentre controls revenue costs
3 Investmentcentre controlsrevenue costs assets



FinancialPerformance clleasures

1 ROI Return on investment
ROI Operating Income Average OperatingAssets


Ways to improve ROI
Increase sales
Reduce expenses
Reduce assetbase
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