Problem: Your team has been asked to present a proposal to management for developing a cost accounting system for the new online business unit of a merchandising company. Your final system must contain features designed to support the ability of both the new online business unit and the parent unit to measure the performance of the new business. When the project is implemented, your team will help develop the organizational strategy and manage the accounting control/cost systems needed for success.
Prepare a memo to management on how the cost accounting function for the new online business unit would be created and what it would accomplish.
a. Analyze the various perspectives that could be used to measure the performance of the new unit. For example, a financial perspective would be an obvious one, but within that perspective, you may want to consider different viewpoints. How would the CEO of the parent unit define success? How would the General Manager of the new online business unit define success? What other perspectives are appropriate?