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34 Cards in this Set
- Front
- Back
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Balanced scorecard
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An integrated set of performance measures that are derived from and support the organization's strategy.
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An integrated set of performance measures that are derived from and support the organization's strategy.
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Balanced scorecard
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common fixed cost
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a fixed cost that supports more than one business segment, but is not traceable in whole or in part to any one of the business segments
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a fixed cost that supports more than one business segment, but is not traceable in whole or in part to any one of the business segments
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common fixed cost
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cost center
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a business segment whose manager has control over cost but has no control over revenue or investments in operating assets
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a business segment whose manager has control over cost but has no control over revenue or investments in operating assets
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cost center
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decentralized organization
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An organization in which decision-making authority is not confined to a few top executives but rather is spread throughout the organization
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An organization in which decision-making authority is not confined to a few top executives but rather is spread throughout the organization
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decentralized organization
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Economic Value Added
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A concept similar to residual income in which a variety of adjustments may be made to GAAP financial statements for performance evaluation purposes
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A concept similar to residual income in which a variety of adjustments may be made to GAAP financial statements for performance evaluation purposes
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Economic Value Added
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Investment center
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A business segment whose manager has control over cost, revenue, and investments in operating assets
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A business segment whose manager has control over cost, revenue, and investments in operating assets
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Investment center
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margin
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net operating income divided by sales
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net operating income divided by sales
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margin
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net operating income
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income before interest and income taxes have been deducted
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income before interest and income taxes have been deducted
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net operating income
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operating assets
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cash, accounts receivable, inventory, plant and equipment, and all other assets held for operating purposes
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cash, accounts receivable, inventory, plant and equipment, and all other assets held for operating purposes
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operating assets
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profit center
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a business segment whose manager has control over cost and revenue but has no control over investments in operating assets
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a business segment whose manager has control over cost and revenue but has no control over investments in operating assets
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profit center
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residual income
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the net operating income that an investment center earns above the minimum required return on its operating assets
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the net operating income that an investment center earns above the minimum required return on its operating assets
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residual income
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responsibility center
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any business segment whose manager has control over costs, revenues, or investments in operating assets
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any business segment whose manager has control over costs, revenues, or investments in operating assets
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responsibility center
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Return on Investment
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Net operating income divided by average operating assets. It also equals margin multiplied by turnover
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Net operating income divided by average operating assets. It also equals margin multiplied by turnover
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Return on Investment
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segment
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any part or activity of an organization about which managers seek cost, revenue, or profit data.
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any part or activity of an organization about which managers seek cost, revenue, or profit data.
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segment
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segment margin
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a segment's contribution margin less its traceable fixed costs. It represents the margin available after a segment has covered all of its traceable costs
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a segment's contribution margin less its traceable fixed costs. It represents the margin available after a segment has covered all of its traceable costs
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segment margin
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traceable fixed cost
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a fixed cost that is incurred because of the existence of a particular business segment and that would be eliminated if the segment were eliminated
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a fixed cost that is incurred because of the existence of a particular business segment and that would be eliminated if the segment were eliminated
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traceable fixed cost
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turnover
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Sales divided by average operating assets
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Sales divided by average operating assets
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turnover
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