Discussion 4: Managerial Accounting

Discussion 4: Managerial Accounting

Module 09: Evaluating Decentralized Operations

Q:

Sherry Smith is the president/CEO of Tiller Components. She founded the firm and has led it to become an industry leader in the area of automobile manufacturing components and parts. The company has plants in over 35 areas across the country. Smith is finding that she cannot manage and stay on track with things the way she was able to in the past. Explore the advantages and disadvantages of decentralizing the company’s decision-making activities among the different local and regional managers. Evaluate what functions Smith should consider to be conducted centrally and why she should choose these functions. How would the shift in this method of decision-making and management impact the company overall?

Explain.

Further, how can the use of analytical tools, such as return on investment (ROI) and residual income assist Smith with better understanding how each of her divisions and segments are performing? Are these tools sufficient to understand the firm’s overall success? Are there other metrics, such as liquidity or profitability ratios that can be used to better assess each division? Explain.

Embed course material concepts, principles, and theories (which requires supporting citations) along with at least one scholarly, peer-reviewed reference supporting your answer. Keep in mind that these scholarly references can be found in the Saudi Electronic Library by conducting an advanced search specific to scholarly references.

You are required to reply to at least two peer discussion question post answers to the weekly discussion question. These peer replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that answer. Normal course dialogue does not fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.

Keep in mind that current scholarly references can be found in the Saudi Digital Library by conducting an advanced search. Current research means published in the last five years.

• Make sure to cite your statements and in-text citation using APA
• The assignment must include good references in addition to course book. (Minimum 4)

The Course book is

Warren, C. S., & Tayler, W. B. (2020). Managerial accounting (15th ed). Cengage.

Print: ISBN: 9781337912020

eText ISBN: 9780357685709

• Please make sure to answer each part, and use subheading
• Use APA 7th edition and Saudi Electronic University academic writing standards.
• please find out the attachments
• Please attach copy of all references you use