The following is a list of terms related to performance evaluation.
1. Balanced scorecard
2. Variance
3. Learning and growth perspective
4. Nonfinancial measures
5. Customer perspective
6. Internal process perspective
7. Ideal standards
8. Normal standards
Instructions
Match each of the following descriptions with one of the terms above.
(a) The difference between total actual costs and total
(b) An efficient level of performance that is attainable under expected operating conditions.
(c) An approach that incorporates financial and nonfinancial measures in an integrated system that links performance measurement and a company's strategic goals.
(d) A viewpoint employed in the balanced scorecard to evaluate how well a company develops and retains its employees.
(e) An evaluation tool that is not based on dollars.
(f) A viewpoint employed in the balanced scorecard to evaluate the company from the perspective of those people who buy its products or services.
(g) An optimum level of performance under perfect operating conditions.
(h) A viewpoint employed in the balanced scorecard to evaluate the efficiency and effectiveness of the company's value chain.
Want to see the full answer?
Check out a sample textbook solutionChapter 11 Solutions
Managerial Accounting: Tools for Business Decision Making
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Managerial Accounting (4th Edition)
Financial Accounting
Financial Accounting
Managerial Accounting (5th Edition)
Principles of Accounting Volume 2
- A) Write difference between absorption costing and variable costing.  B) Write cost pool, cost driver, activity cost, budgeting.  C) What are the assumption of CVP analysis? What is BEP point?  D) Draw a CVP graph.arrow_forwardIdentify the output and input variables in both the bottom-up and top-down strategies to cost estimation.arrow_forwardThree major influences on pricing decisions are​ ________.  A. continuous​ improvement, customer​ satisfaction, and supply  B. variable​ costs, fixed​ costs, and mixed costs  C. ​competition, demand, and production efficiency  D. ​competition, costs, and customersarrow_forward
- Of the eight steps in using formal methods of cost evaluation, which is most important in the analysis? Specify altematives Measure costs and benefits Identify study objectives Lifecycle and discountingarrow_forwardWrite cost pool, cost driver, activity cost, budgeting.  What are the assumption of CVP analysis? What is BEP point?  Draw a CVP graph.arrow_forwardCost estimation is the process of  a. Summarizing pwst costs into fixed variable components. b.Estimating the relationship between costs and the costs drivers that cause those costs. c. Documenting costs in terms of direct and indirect costs. d. All of the choicesarrow_forward
- REQUIRED: How much is the controllable margin of A1 for purposes of evaluating the segment manager's performance?arrow_forwardTrue or 2. Reasons for using standard costing include: A) Comparing projected costs against actual costs B) Planning and budgeting purposes C) Setting prices in advance D) Identifying specific areas for process improvement E) All of the abovearrow_forwardWhat is standard cost ? Explain four purposes of standard costing.   NB: This concept should be in accouting prefebly in Performance Management Accountingarrow_forward
- Which of the following objectives would likely be associated with the customer perspective of the balanced scorecard? a. Increasing post-sales service efficiency b. Decreasing product development cycle time c. Reducing distribution channel cost d. Increasing delivery reliabilityarrow_forwardClassify each of the following performance measures into the balanced scorecard perspective to which it relates: financial perspective, internal operations perspective, learning and growth perspective, or customer perspective. A. Number of improved products B. Time from packaging to delivery or display C. Production costs D. Number of customer suggestions E. Sales mix revenues F. Number of repeat customersarrow_forwardA Box Scorecard was prepared for a value stream: Required: 1. How many nonfinancial measures are used to evaluate performance? Why are nonfinancial measures used? 2. Classify the operational measures as time-based, quality-based, or efficiency-based. Discuss the significance of each category for lean manufacturing. 3. What is the role of the Planned Future State column? 4. Discuss the capacity category and explain the meaning of each measure and its significance. 5. Discuss the relationship between the financial measures and the measures in the operational and capacity categories.arrow_forward
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning