Performance Measures (M45) Flashcards Preview

BEC > Performance Measures (M45) > Flashcards

Flashcards in Performance Measures (M45) Deck (60)
Loading flashcards...
1

____ Describes how an organization uses its activities and resources to achieve its objectives

Strategy

2

____ Includes the performance measures used to ensure the strategy of the organization is being executed and to monitor performance

Execution

3

The ______ is a strategic performance measurement and management framework for implementing strategy by translating an organization's mission and strategy into a set of performance measures

Balanced Scorecard

4

What are the 4 primary perspectives of a balanced scorecard?

1) Financial
2) Customer
3) Internal Business Processes
4) Learning & Growth

5

What are the 5 components of a balanced scorecard?

1) Strategic Objectives
2) Performance measures
3) Baseline performance
4) Targets
5) Strategic initiatives

6

What is the most important purpose of a balanced scorecard?

Measure performance

7

What are the 5 characteristics of the balanced scorecard?

1) Strategy-Focused
2) Balanced
3) Includes both financial & non-financial measures
4) Cause & Effect Linkages
5) Unique to the strategy

8

Economic Profit is...

Accounting Profit Minus Cost of Capital

9

Economic Value Added is...

Net operating profit after taxes -

[the after-tax weighted-average cost of capital * (total assets minus current liabilities)]

10

These ratios measure how effective a firm is at generating profit from operations. Management attempts to maximize these ratios to maximize firm value

Profitability Ratios

11

How do you calculate Gross Margin/Gross Profit

Gross Sales
- Sales Discounts
- Sales Returns & Allow
= Net Sales
- CoGS
= GM/GP

12

How do you calculate common stockholder's equity?

Total SHE
- P/S Par Value
- P/S Dividends
- P/S Liq Premiums
= SHE to C/S

13

Calculate Cost of Goods Purchased

Gross Purchases
- Purchases Discounts
- Purchases Returns & Allow
= Net Purchases
+ Freight in
= CoG Purchased

14

Calculate Cost of Goods Sold

Beginning Inventory
+ CoG Purchased
= CoGAS
- Ending Inventory
= CoGS

15

These ratios measure the effectiveness with which management finances the assets of the firm. They are used to evaluate the financial leverage of the firm

Debt Utilization Ratios

16

These ratios involve measures that consider the market value of the firm's common stock

Market Ratios

17

What financial analysis technique would imply benchmarking with other firms?

a) Horizontal analysis
b) Vertical analysis
c) Cross-sectional analysis
d) Ratio analysis

C

18

This compares similar operations within different units of the same organization

Internal Benchmarking

19

This targets processes and methods used by an organization's direct competitors

Competitive Benchmarking

20

This compares similar functions within the same broad industry

Functional or Industry Benchmarking

21

This compares processes that are independent of industry

Generic Benchmarking

22

When the Numerator is Greater than the Denominator, and you add equal amounts to both, you get a ___ in the ratio

Decrease

23

When the Numerator is Greater than the Denominator, and you decrease equal amounts to both, you get a ___ in the ratio

Increase

24

When the Denominator is Greater than the Numerator and you add equal amounts to both, you get a ___ in the ratio

Increase

25

When the Denominator is Greater than the Numerator and you decrease equal amounts to both, you get a ___ in the ratio

Decrease

26

This is a continuous process of comparing the levels of performance in producing products and services and executing activities against the best levels of performance. It is the search for and implementation of best practices.

Benchmarking

27

These are the performance metrics used in benchmarking

Benchmarks

28

This focuses on managing the organization to excel in quality in all dimensions of products and services for customers

Total Quality Management

29

What are the 5 phases of the life cycle of business process management?

1) Design
2) Modeling
3) Execution
4) Monitoring
5) Optimization

30

This phase of the life cycle of business process management involves identification of existing processes and design of process improvements.

Design