Flashcards in Performance Measures (M45) Deck (60)
____ Describes how an organization uses its activities and resources to achieve its objectives
____ Includes the performance measures used to ensure the strategy of the organization is being executed and to monitor performance
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
What are the 4 primary perspectives of a balanced scorecard?
3) Internal Business Processes
4) Learning & Growth
What are the 5 components of a balanced scorecard?
1) Strategic Objectives
2) Performance measures
3) Baseline performance
5) Strategic initiatives
What is the most important purpose of a balanced scorecard?
What are the 5 characteristics of the balanced scorecard?
3) Includes both financial & non-financial measures
4) Cause & Effect Linkages
5) Unique to the strategy
Economic Profit is...
Accounting Profit Minus Cost of Capital
Economic Value Added is...
Net operating profit after taxes -
[the after-tax weighted-average cost of capital * (total assets minus current liabilities)]
These ratios measure how effective a firm is at generating profit from operations. Management attempts to maximize these ratios to maximize firm value
How do you calculate Gross Margin/Gross Profit
- Sales Discounts
- Sales Returns & Allow
= Net Sales
How do you calculate common stockholder's equity?
- P/S Par Value
- P/S Dividends
- P/S Liq Premiums
= SHE to C/S
Calculate Cost of Goods Purchased
- Purchases Discounts
- Purchases Returns & Allow
= Net Purchases
+ Freight in
= CoG Purchased
Calculate Cost of Goods Sold
+ CoG Purchased
- Ending Inventory
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
These ratios involve measures that consider the market value of the firm's common stock
What financial analysis technique would imply benchmarking with other firms?
a) Horizontal analysis
b) Vertical analysis
c) Cross-sectional analysis
d) Ratio analysis
This compares similar operations within different units of the same organization
This targets processes and methods used by an organization's direct competitors
This compares similar functions within the same broad industry
Functional or Industry Benchmarking
This compares processes that are independent of industry
When the Numerator is Greater than the Denominator, and you add equal amounts to both, you get a ___ in the ratio
When the Numerator is Greater than the Denominator, and you decrease equal amounts to both, you get a ___ in the ratio
When the Denominator is Greater than the Numerator and you add equal amounts to both, you get a ___ in the ratio
When the Denominator is Greater than the Numerator and you decrease equal amounts to both, you get a ___ in the ratio
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.
These are the performance metrics used in benchmarking
This focuses on managing the organization to excel in quality in all dimensions of products and services for customers
Total Quality Management
What are the 5 phases of the life cycle of business process management?