10 -2 
                        Objectives
                        Objectives
                        Objectives
                         Objectives
    1. Compare and contrast functional-based, 
                     After studying this  
                     After studying this  
                     After studying this  
                     After studying this  
        activity-based, and strategic-based 
                     chapter, you should 
                     chapter, you should 
                     chapter, you should 
                     chapter, you should 
        responsibility accounting systems.
                         be able to:
                          be able to:
                          be able to:
                          be able to:
    2. Explain process value analysis.
    3. Describe activity performance measurement.
    4. Discuss the basic features of the Balanced 
        Scorecard.
                      Responsibility                          10 -3 
                      Responsibility 
                  Accounting Model
                  Accounting Model
             The responsibility accounting model is 
             defined by four essential elements: 
               Assigning responsibility
               Establishing performance measures or 
                  benchmarks
               Evaluating performance
               Assigning rewards
              Types of Responsibility                          10 -4 
               Types of Responsibility 
                        Accounting
                         Accounting
             Management accounting offers the 
             following three types of responsibility 
             accounting systems.
              Functional-based
              Activity-based
              Strategic-based
                                                                10 -5 
                        Functional-
                         Functional-
                Based Responsibility 
                 Based Responsibility 
                 Accounting System
                  Accounting System
      A functional-based responsibility accounting system 
         assigns responsibility to organizational units and 
       expresses performance measures in financial terms.
          It is the responsibility accounting system that 
              was developed when most firms were 
           operating in relatively stable environments.
                                                 10 -6 
               Elements of a 
               Elements of a 
               Elements of a 
               Elements of a 
             Functional-Based 
             Functional-Based 
             Functional-Based 
             Functional-Based 
              Responsibility 
               Responsibility 
               Responsibility 
               Responsibility 
           Accounting System
            Accounting System
            Accounting System
            Accounting System