20061217
7 成功大學 EMBA
2006/12/17 管理會計上課重點(951217)(7) Mark’s note
AM 1 Notes:
B747 vs. A380
Does big R&D means….
Focuses of today:
 Decentralization vs. centralization 分權與集權
 Responsibility center and transfer pricing 責任中心轉移計價
 Performance measurement: ROI, RI, EVA, ROS (red part is
particular important) 積效衡量


Agency theory & agency problems (代理人理論,資訊不對稱)
In order to prevent agency problem, what the manager and owner
should keep their eyes on. (hint if this question is in the term exam.—last
year)
資訊不對稱: the manager’s information is much more than the owners’
Responsibility center—profit center
 Ommitech company
1. market-based transfer prices: A 15, B 5
2.
3.
cost-based plus transfer prices: A 7, B13
Negotiated prices:
A 10, B10
Behaviorism 行為管理學派
 Elton Mayo: Hawthorne experiment
 Abraham Maslow: need level
 Douglas McGregor: X theory, Y theory, Z theory
 Mary Parker Follett: The first one to introduce psychology to
management
 Skinner: Skinner box


Reinforcement theory
Agency theory
Three apples that changed the world…(warm up)
1. Newton’s apple…
2. Adam and Eva…evil idea…X-theory
3. William Tell—at Altdorf…arrow shot the apple over his son’s head
20061217
7 成功大學 EMBA
Management Control system (1--6, in sequence)
1.
2.
3.
4.
5.
6.
X theory: Skinner box
Management Control system: purpose, performance measurement and
management compensation
Decentralization
1. Profit center (transfer price and sub optimization), 2. investment center
(ROI return on investment, RI, ROS, EVA)
1. Compensation (stock options, cash or stock bonus, stock appreciation
rights, performance shares), 2. agency theory (agency problems)
dysfunctional behavior
How to share EVA between owner and manager?
1. 稅前淨利
2. 營利事業所得稅 25% (to encourage certain enterprise with decrease of tax,
3.
4.
5.
台機電 25 億2 千萬), 優惠最低稅賦 10% in the near future
優惠最低稅賦 10% in the near future
(資產-流動負債)X 平均加權資金成本率 (WACC, weighted average of capital
cost)
share EVA between owner and manager: 會計師聘任 (台機電 75%外資, 奇美
<50%外資)
BusinessWeek: Leaders/Products/Ideas Best (and Worst) of 2006
 Mazda CX-7 (CUV) : 2006 best car (24345 USD)
 Parasonic Lumix DMC FZ50 ($650), zoom to 180
 Cisco Telepresence Meeting System ($299,000 plus maintenance)
 Nintendo Cii
 Microsoft Zune (against iPod)
 Dell XPS-M2010 ($2,999 and up), wireless keyboard
 Touchless trash can
 Honda Gold Wing ($24,049, 1,834cc) 80-walt stereo
 Blue Ocean Strategy: Casella Wines, Yellow tail and grape
Sarbanes-Oxley Act or 2002 (PDF file)
•
Compensation →
Stock options, Cash or Stock Bonus,Stock
20061217
7 成功大學 EMBA
Appreciation
Rights,Performance Shares
Agency Problems
AM2.2 Agency
Notes: Theory →
Slides of Decentralization, segment reporting and performance measurement 分
權化、部門報表與積效衡量
Management Control system (1--6, in sequence) again
1.
X theory: Skinner box
2. Management Control system: purpose, performance measurement and
management compensation
3. Decentralization
4. Profit center (transfer price and sub optimization), 2. investment center
(ROI return on investment, RI, ROS, EVA)
5.
6.
Compensation (stock options, cash or stock bonus, stock appreciation
rights, performance shares), 2. agency theory (agency problems)
dysfunctional behavior
Responsibility center—superior foods corporation—cost center
Segment reporting: [PDF] Segment Reporting



R&D
Traceable and Common Costs: Don’t allocate common costs to segments.
Value chain:

design
Product

manufacturing

marketing

distribution

customer
service
積效衡量 (must test) return on investment, RI, ROS
return on investment (ROI) (a must question in term test)
=net operating income/average operating assets
=income before interest and taxes/
 Three ways to increase ROI:
 ROI and balanced scorecard; Which internal business process should be
improved?
 Four fields: finance, custom, learning and growth, internal process
(non-finance credit)
 Dysfunctional behavior, without BCS (balance cost scorecard) lack of


long-term ROI, if committed costs is uncontrollable cost.
 Residual Income (RI): examples (a must question in term test)
 Return on sales (ROS): 營業利益/sales
 Economic value added (EVA)
 Skinner Box: residual income encourages managers to make profitable
investments that would be rejected by managers using ROI (RI>ROI)
 責任中心的反功能行為: (maybe a question in term test):
20061217
7 成功大學 EMBA
中文本
Page 29.
 management control system (MCS) is due to X theory, in order to increase the
efficiency, using management compensation
 CE’s MCS (Will not test this question)
1. total organization level
2. customer/market level
3. individual facility level
4. individual activity level
 Responsibility Accounting (Will not test this question)
1. premises: All spending is subject to control and responsibility for

spending can be fairly fixed
2. object: internal and external (Will not test this question)
Responsibility center
1. cost centers
2. revenue centers
3. profit centers
4. investment centers
Page 32
SWOT (Strength, weakness, opportunity, threat)
Five forces analysis (Michael Porter) Porter 5 forces analysis - Wikipedia
Page 33
B/S
資產
負債
股東權益
ROI=net income/investment
5 Steps of performance measurement
Page 34; ROI, RI. ROS, EVA, WACC
Page 35 : Key financial performance measures in the Global : US favors ROI, RI,
income(not ROS), but Japan favors ROS, ROI

Locus of control (Type A, B; Theory X, Y, Z)
1.
individualism and collectivism
2. power distance
3. uncertainty avoidance 風險管理
4. masculinity and femininity
20061217
7 成功大學 EMBA
Page 33
Moral Hazard: 成大醫院固定薪 vs. 奇美醫院零底薪
Benchmarks 標竿 and relative incentive compensation plan
PM1 reports:
第 6 組報告(評論: 第 1 組)/第 7 組報告( 評論: 第 2 組)