Respond to both questions listed below:
�What insights have you gained from your learning in this seminar, as they pertain to the alignment of
decision rights Assignment, incentive contracts, and performance evaluation systems to organizational
design, plans, and control systems?
�How do the concepts of pricing/contribution margin analysis, cost allocation, activity-based costing,
throughput accounting, key performance indicators, and balanced scorecard methods apply to corporate
governance, performance evaluation, and managerial accounting system design?
Seminar lessons application
Seminar lessons applications
For efficiency in the provision of incentives, all the three systems involved in incentive
contracts must be balanced against each other. Rewards, measurement of performance and
allocation of decision rights should all be integrated and have a common goal (Anna 2013).
Since the authority to decide on the components is hierarchical, adjustment of centralized
systems should be adjusted to allow for decentralization. Decision right assignments, incentive
contracts, and performance evaluation systems are all aligned to managerial decisions. They
require proper design, planning, and control for effective performance. Decentralization of
decision rights, incentive contracts, and performance evaluation systems enhances effective
design and control. When the roles get assigned to specific individuals or departments, thorough
information is obtained with proper expertise in execution of the tasks. When the components are
integrated and have the balance they all, lead to the attainment of organizational goals in unison.
Balance score card, contribution margin analysis, cost allocation and activity-based
costing all form components of management accounting dispensation. Balance has to exist in all
the different departmental tasks for proper corporate governance. When management
accountants apply the different accounting methods efficiently, decisions made regarding the
overall performance of the organization are always effective (Bastian 2015). It requires proper
systems in place to allow for overall corporate governance. Financial management is the core
component used in performance evaluation. Expertise knowledge on the different types of
financial controls and systems assists in performance evaluation and management that provide
for effective corporate governance.
The available incentive contracts must serve many purposes and if designed to better
performance acts against other organizational objectives (Susan and Robert 2013). Available
means to affect a certain sort of behavior always affect the incentives governing choices made.
Seminar lessons applications
It, therefore, means that design of performance contracts, performance evaluation systems, and
decision rights must be interlinked to have a common goal and for balance within the
organizational planning and control structure.
Seminar lessons applications
References
Anna Reichmann (2013). Decentralized task assignment and centralized roles.
