Title: Module 1 Introduction: (CU3 M1) Responsibility Accounting and Performance Evaluation
Course: SkillsCom BA 213 15.0 > Section: Credit Unit 3 Module 1

This chapter seeks to answer one simple question: How can a manager control what they cannot see?

When a company grows bigger, it is a simple fact that one manager cannot oversee every single aspect of their company. So how can a manager maintain control of all operations--even from a distance--while making sure customers are pleased, the business follows proper procedures, and that the employees are both safe and happy?

The answer lies in ensuring that every subunit of a company follows responsibility accounting--that is, an accountability system that verifies all managers and submanagers are working in the best interest of the entire company and not just their own department. These practices help companies remain unified in their goals and thus lead to their overall success.

Module Outcomes:

- Explain why decentralized companies need responsibility accounting.
- Define performance evaluation systems and explain how they are used.
- Explain how transfer prices can affect decentralized companies.