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16 Cards in this Set
- Front
- Back
financial, customer, learning and growth, and internal business
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Perspectives on the Balanced Scorecard
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controlling costs, evaluating management performance, and setting selling prices of finished goods
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Usefullness of Standard Costs
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Return on Investment (ROI) is calculated as...
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before tax operating income/total assets
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cost centers, revenue centers, profit centers, and investment centers
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4 classifications of responsibility centers
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name the one common component when calculating ROI, RI, and EVA
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total assets
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frees top managers' time; supports use of expert knowledge; improves customer relations; provides training; improves motivation and retention
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advantages of decentralization
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type of budget that:
is a series of static budgets; can be prepared for each type of budget included in the master budget; increases budgeted amount for variable costs as production increases |
flexible budget
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a subunit responsible for generating profits and efficiently managing the division's invested capital (assets)
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investment center
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two variances that are considered when developing standards for DM and DL
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standards
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difference between cost centers and profit centers
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Cost = reports costs only
Profit = reports costs and revenue |
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performance measurement approach that uses both financial and non-financial measurements in an integrated system
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Balanced Scorecard
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a formal written summary of managements' plans for a specified future time period, expressed in financial terms
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Budget
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directs management's attention to important differences between actual results and planned amounts
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Management by Exception
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management's attemp to align the goals of subunit managers with the goals of top management
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Goal Congruence
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summary performance measure that helps management assess whether the company is achieving its long and short-term goals
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Key Performance Indicators
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ROI can be broked down into which two financial measures
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Sales Margin and Capital Turnover
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