Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Listed below are eight terms: Residual income, management compensation, return on sales, business process lens, balanced scorecard, return on investment, stock options, capital turnover Each

Listed below are eight terms: Residual income, management compensation, return on sales, business process lens, balanced scorecard, return on investment, stock options, capital turnover

Each of the following statements may (or may not) describe one of these terms. For each statement, indicate the term described, or answer "none" if the statement does not correctly describe any of these terms.

a. Tells managers the incremental operating earnings for each additional sales dollar.

b. The focus of this business performance measurement is the sales dollars earned from each invested dollar.

c. A tool used by managers and owners of organization's to align managers' goals with those of the organization.

d. This method considers all costs borne by the customer from purchase to disposal of a product.

e. A business performance measurement that takes into account the minimum required return on the assets employed.

f. Measures for this category of business performance are associated with eliminating non-value-added costs from the value chain.

g. A method in which a product's selling price is determined by adding a fixed amount to the product's current production cost.

h. This performance evaluation method is criticized for motivating managers, in some instances, to ignore investments that are in the best interest of the company as a whole.

i. An important aspect of this method is the consideration of the many perspectives of the multiple stakeholders in an organization.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practical Pension Scheme Accounting

Authors: Shona Harvie, Joanne Scriven, Phil Spary

2nd Edition

1526508974, 9781526508973

More Books

Students also viewed these Accounting questions

Question

Am I buying this in an attempt to satisfy a psychological need?

Answered: 1 week ago

Question

What is job rotation ?

Answered: 1 week ago