1.) Difference between centralize ad decentralizeCentralize made by higher level, implemented by lower levelDencentralize- made and implemented by lower level2.) Units created in decentralization : Divisions3.) Advantages of decentralization:(a) ease of gathering and using local info(b) focuses on central management(c) training and motivating segment managers(d) enhanced competition4.) turn over = sales/ ave. Operating asset5.) ROI=operating income/ ave op asset6.) Residual income = operating income -( minimum rate of return x ave operating asset)7.)Economic value added after tax income (actual percentage cost of capital x total capital employed)8) impact of reducing inventories in ROI:(a) encourages managers to focus on sales, expenses and investments (b) focus on operating asset (c) focus on asset efficiency9.) average operating aseet =beg . operating asset + end operating asset / 210.) emphasis of economy value added: actual cost and after tax operating income11who sets the rate in ROI : company12 13tranfer pricing = is the price charged for a component by the selling dvision to the buying division of the same company14 types of transfer prices : market proce, cost based transfer proce, negotaiated transfer price15 what shall be used if market price is missing :cost based transfer pricing17] different responsibility centers : revenue, cost , profit , investment18 responsibility center =segment of a business whose manger is accountable for specified sets19 Margin =ratio of operating income to sales (operating income/ sales)221 22 what are absolute dollar values =operating income, residual income , eva2324 actual percentage cost of capital x total capital employed2526 what is balance scorecard ? is a strategic management system that defines a strategic based responsibility accounting system27 what is internal business process: internal business processes reduced to provide value for customers and owners28 perspectives of Balance score cardfinancial, customer, internal process, learning and growth29 velocity = number of outputs produced at a given period30 manufactuting cycle efficiency = values added over time spent = processing time/ ( processing tine + moving to time + inspection + waiting)