Introduction
Most organization are divided into departments that are headed by supervisors and other junior staff so as to ensure they carry out their transactions effectively and decision making can be held in an effective manner. Responsibility accounting is the process of collecting, summarizing and reporting the financial information of various decisions made for an organization. It traces the costs, revenues or profits that an individual manager is held responsiblefor, while making their decisions and there forth taking action where necessary.
Name and nature o the organization
CommQuest limited company is a company deals with providing the clients with end to end solution for their problems in the marketing industry. It is one of the largest digital groups in Australia that provides its clients with superior services through working together to ensure that activities are carried out effectively. It also has an integrated marketing and communication group with a market leading position in mobile and digital sectors. The management of the company has got marketing options that enables it to provide accessible aspects of communication with the use of tools that assist it in providing services such as strategic marketing, direct marketing, direct sales, public relations and public affairs. Recently it has recorded improvement in its performance since there has been excelling in its expansion where it has recorded strong acquisitions and growth.
The responsibility accounting is applied in CommQuest limited company where the manager is held responsible for the actual performance and budgets. The manager is involved in ensuring that the plans and controls of resources are undertaken effectively.They also ensure that a responsibility centre has been established so that all departments within the organization perform their activities as expected of them (Arunachalam and Beck 25).
The situation where the manager is held responsible for revenues, costs and activities where authority has been vested on them, is during the period when it wants to raise funds to expand its operations.
Activity and time period used
The management of the company raised over $30.2 million under the initial public offering (IPO) whereby 30.2 million share was valued at $1.0.The market capitalization had an issue price of $72.2 million. These funds were intended to increase funds that would enable it run operations cost effectively.
Inputs used
The inputs that used to carry out the activity were the underwriters and lead managers who were appointed to undertake the transactions within the stipulated period of time. The other inputs used included the quantity of material required to ensure that the share certificates and shares were transacted effectively.The number of hours spent in ensuring that the exercise was completed were part of inputs that were required during the responsibility accounting process ( Chenhall 550).
Results
The results generated as a result of carrying out the transaction were an increase in funds that would be used to promote the acquisition of specialist marketing services for the companies that formed the group.
Implications from the results
The implications of the results would be that the company would be in a position to offer diversified services such as direct marketing, advertsing, event planning, public relation, mobile technology, digital and interactive marketing as well as provision of media planning and buying of services. Once the activity were fully implemented there was high growth in marketing services, presence of differentiated business models that would have strong focus on the return on investment for the clients. The other implications of the results would be introduction of technology that would provide good competitive advantages in the direct mobile sectors of the economy. These activities would ensure that the sales volumes of the company increased significantly during the company’s financial period.
It has been noted that the performance of a company can be improved if the management assigns duties and responsibilities to qualified personnel who would carry out their transactions effectively, hence lead to increased returns for the organization.
Works Cited
Dunn, Philip. Responsibility Accounting, 2003. Web.
Initial Public Offer, 2007. Web.
Arunachalam, V. and Beck, G. Functional fixation revisited: The effects of feedback and Repeated measures design on information processing changes in response to an Accounting change. Accounting, Organizations and Society 2002: 27(1-2): 1-25.
Chenhall, R. H. Accounting for the horizontal organization: A review essay. Accounting, Organizations and Society 33(4-5) 2008: 517-550.