Balanced Scorecard, Costing System, and Production Costs Assignment

Balanced Scorecard, Costing System, and Production Costs - Assignment Example For firms which do not have a centralized operation, an essential requirement for them is responsibility centers which include cost centers, revenue centers, investment centers, and profit centers. The performance monitoring measures for these centers are standard cost, divisional profit and return on investment. The transfer price here is the amount that division A of a company charges to division B of the same company for a product transferred. Accounting systems act as critical support systems for managerial decision making in different organizations. Selecting a new market for a product is a critical strategic management decision which is done by suitable evaluation of costs and benefits. This involves the evaluation of the financial and accounting aspects of an organization as well. The financial variability and the system of cost allocation along with an evaluation of financial resources, activities, and capabilities are to be considered while selecting a target market for expa nding into or for launching new or existing products. Important factors like the time factors, employee performance and employee perception, costs factors, and performance of the organizations can be suitably evaluated through the use of the accounting systems in an organization. The financial information provided by the accounting systems like profit levels, sales growth, returns and other non-financial information like customer satisfaction levels, the performance of the competitors, customer loyalty and competing products act as a support system for managerial decision making for launching a new product into a market including the selection of an entry market. The reverse income analysis is used as a part of accounting to evaluate the capital budgeting aspects of the launch of a product into a new market. The managerial decisions which involve the investments done by an organization in real assets are the most important managerial decisions in terms of economic value creation. The capital investments are done by a business in new and existing projects including investing in building new plants, buying machinery, launching new products etc. are critical for deciding the economic future of a business.