all one question, just matching term to definition. there are 29 terms and definitions. thank you!
Operating income generated by a profit center or investment center before subtracting common fixed costs that have been allocated to the center Has a manager that is responsible for both revenues and costs Sales revenue growth or ROI Top management delegates decision making responsibilities to the segment managers 1. Decentralization Hours of employee training or employee turnover 2. Disadvantages of decentralization Responsibility center Operating income divided by total assets 4. Cost center Summary performance metrics used to assess how well a goal is being achieved 5. Revenue center Difference between the flexible budget and the actual results 6. Profit center Focuses on how efficiently the division uses assets to generate revenue 7. Investment center 8. Performance report Sales territories Favorable variance Has a manager responsible for generating revenue, controlling costs, and efficiently managing the division's assets 10. Unfavorable variance Potential duplication of costs and problems achieving goal congruence 11. Management by exception 12. Segment margin Causes operating income to be higher than budgeted 13. Direct fixed expenses Average customer satisfaction rating or percentage of market Potential duplication of costs and problems achieving goal congruence 11. Management by exception 12. Segment margin Causes operating income to be higher than budgeted 13. Direct fixed expenses Average customer satisfaction rating or percentage of market share 14. Common fixed expenses Fixed expenses that can be traced to the center Return on investment The price charges for the internal sale of product between two different divisions of the same company Sales margin Causes operating income to be lower than budgeted 17 Capital turnover 18. Residual income Determines whether the division has created any excess income above management's expectations 19. Transfer price Compares actual revenues and actual expenses against budgeted figures 20. Flexible budget Part of an organization whose manager is accountable for planning and controlling certain activities 21. Master budget variance 22 Volume variance Prepared for a different level of volume than the one anticipated 23. Flexible budget variance Focuses on profitability by showing how much operating income the division earns on every dollar of sales revenue 24. Balanced Scorecard Difference between the actual revenues and expenses and the master planning budget 25. Key performance indicators 26. KPI for financial perspective Difference between the master budget and the flexible budget 27. KPI for customer perspective Number of new products developed or number of warranty claims 28 KPI for business perspective Causes operating income to be lower than budgeted 17 Capital turnover 18 Residual income Determines whether the division has created any excess income above management's expectations 19. Transfer price Compares actual revenues and actual expenses against budgeted figures 20. Flexible budget Part of an organization whose manager is accountable for planning and controlling certain activities 21. Master budget variance 22. Volume variance Prepared for a different level of volume than the one anticipated 23. Flexible budget variance Focuses on profitability by showing how much operating income the division earns on every dollar of sales revenue 24. Balanced Scorecard Difference between the actual revenues and expenses and the master planning budget 25. Key performance indicators 26. KPI for financial perspective Difference between the master budget and the flexible budget 27. KPI for customer perspective Number of new products developed or number of warranty claims 28. KPI for business perspective Division's cost of a computer information system that is used by the entire organization 29. KPI for learning and growth perspective Management only investigates budget variances that are relatively large Recognizes that management must consider both financial performance measures and operational performance measures when judging the performance of a company Manufacturing operations
