| Focuses on profitability by showing how much operating income the division earns on every dollar of sales revenue |
| | Compares actual revenues and actual expenses against budgeted figures |
| | Causes operating income to be higher than budgeted |
| | The price charges for the internal sale of product between two different divisions of the same company |
| | Difference between the actual revenues and expenses and the master planning budget |
| | Determines whether the division has created any excess income above managements expectations |
| | Potential duplication of costs and problems achieving goal congruence |
| | Sales revenue growth or ROI |
| | Divisions cost of a computer information system that is used by the entire organization |
| | Sales territories |
| | Operating income divided by total assets |
| | Has a manager that is responsible for both revenues and costs |
| | Management only investigates budget variances that are relatively large |
| | Has a manager responsible for generating revenue, controlling costs, and efficiently managing the divisions assets |
| | Top management delegates decision making responsibilities to the segment managers |
| | Prepared for a different level of volume than the one anticipated |
| | Fixed expenses that can be traced to the center |
| | Difference between the flexible budget and the actual results |
| | Focuses on how efficiently the division uses assets to generate revenue |
| | Recognizes that management must consider both financial performance measures and operational performance measures when judging the performance of a company |
| | Number of new products developed or number of warranty claims |
| | Operating income generated by a profit center or investment center before subtracting common fixed costs that have been allocated to the center |
| | Average customer satisfaction rating or percentage of market share |
| | Manufacturing operations |
| | Summary performance metrics used to assess how well a goal is being achieved |
| | Causes operating income to be lower than budgeted |
| | Difference between the master budget and the flexible budget |
| | Part of an organization whose manager is accountable for planning and controlling certain activities |
| | Hours of employee training or employee turnover |
