Walmart Ltd. operates several departments which are; Sales Marketing Department, Purchasing Department, Corporate and Customer relations Department and the Human Resource Department. Each department has a manager responsible of its operations. The organization is involved in the business of running supermarket shops across the country.
The responsibility accounting should be conducted by the board member after the end of financial year results have been declared. The exercise should last not more than one week.
After the profit and loss reports of the year ending are supplied, the Financial controller should provide the income statements for all the departments. The income statement should have all the Income from each department, fixed costs and the overheads for each department.
The Financial controller should also produce a list of what each department was budgeted at the beginning of the financial year to spend i.e. departmental expected costs at the beginning of the year. The financial controller should also provide a list of all the income projections at the beginning of the year.
The mini budgets of each department and all the activities they had hoped to accomplish before the end of the year should also be tabled.
The Sales and Marketing Department head should explain the following;
- The difference between the projected sales and the actual sales
- The cost of all the marketing activities performed by the organization e.g. promotions.
- The variations between the budgeted cost
- What should be made of goods with high cost and low sales.
- Why some outlets have low sales and high costs
The manager in charge of Purchasing department should explain;
- Why the cost of good are how they are
- The variation between the expected cost and the actual cost
- How to keep costs as low as possible
- The cost of distribution.
The Corporate and Customer relations Department head should explain the following;
- The customer response to the organization.
- Explain about the variation between their expected and actual budget.
The Manager in charge of the Human Resource Department should explain the following;
- The difference between the actual and expected budget for the department.
- Whether all the department activities planned for the year were all achieved e.g. Trainings
- The level of staff turnover and why
Following this, an evaluation report should be made based on the performance of each individual manager. The good performing managers should be rewarded and the manager whose department are not performing should be penalized.