Fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance.
What is Reengineering?
100
Requires commitment and leadership from top management.
What is essential for the success of a balanced scorecard?
100
Resources used to generate income.
What are investments?
100
An accounting measure of income minus a dollar amount for required return on an accounting measure of investment
What is Residual income?
100
Situations in which an employee prefer less effort compared with the effort demanded by the owner because the employee's effort cannot be accurately monitored or enforced.
What is Moral hazard?
200
A company must strive to be the "best in class" among its competitors.
What is the aim of a balanced scorecard?
200
Effectively communicating the strategy to all members of the organizations by translating the strategy into a coherent and linked set of understandable and measurable operational targets.
What is a feature of a good balanced scorecard?
200
Costs recognized in particular situations but not incorporated in financial accounting records.
What is imputed costs?
200
Cost of purchasing an asset today identical to the one currently held.
What is current cost?
200
Helps a company simultaneously strive for performance, behave ethically, inspire employees, and respond to strategic threats and opportunities.
What are the four levers of control?
300
Creating products, services, and processes that will meet the needs of customers.
What is the innovation process?
300
Instantaneous and continuous data about process parameters.
What is real time data?
300
The required rate of return when calculating residual income.
What is WACC?
300
Managers may be encouraged to use excessive amount of short term debt because short term debt reduces the amount of investment.
What is the negative feature of using total assets employed minus current liabilities?
300
Encourages employees to work together to achieve common goals.
What is team-based incentive compensation?
400
Identifies the capabilities the organization must excel at to achieve superior internal processes that create value for customers and shareholders.
What is the learning-and-growth perspective?
400
An example of primary objectives is the number of people served and other service goals.
What are nonprofit organizations?
400
A variation of residual income using after-tax amounts.
What is economic value added method?
400
ROI= Return on sales * Investment turnover
What is DuPont method of profitability analysis?
400
Formal information systems that managers use to focus organization attention and learning on key strategic issues.
What are interactive control systems?
500
Improving manufacturing capability is used as an objective in this perspective.
What is internal-business-perspective?
500
Assuming the cause and effect linkages are precise.
What is a pitfall in implementing a balanced scorecard?
500
Motivates managers to act in the best interest of the company as a whole.
What is the advantage of using residual income as an accounting measure?
500
One component of ROI in the DuPont method of profitability analysis
What is return on sales?
500
Filters out the effects of the common uncontrollable factors.