The price charges for the ___ ___ of product between two different divisions.
Transfer price
100
Manufacturing plants are these type of centers.
Cost Center
100
Return on Investment
Operating Income/Total Assets
100
Financial Perspective - what do we look at
Shareholders
200
Responsibility accounting
A system for evaluating the performance of each responsibility center and its manager.
200
Name one of the strategies for determining a transfer price.
Market price
200
Sales Regions make up these type of centers.
Revenue centers
200
Sales Margin
Operating Income/Sales
200
Customer Perspective - Top priority
Customer satisfaction
300
Residual income
Operating income minus the minimum acceptable operating income given the size of the division's asset. Residual income shows whether the division is earning income above or below the management's expectations.
300
Name the other strategy for determining a transfer price.
Negotiated Price
Negotiated Price
300
Managers are responsible for both ___ & ___ at profit centers.
Revenues and Cost
300
Capital Turnover
Sales/Total Assets
300
Internal business Perspective - Define
At what business processes must we excel to satisfy customer and financial objectives
400
Goal Congruence
When the goals of the segment managers align with the goals of top management.
400
What is the Management ultimate goal for transfer price?
Optimize the company's overall profitability.
400
Investment Centers are responsible for generating ?
Revenue
400
Contribution Margin
Contribution Margin/Sales Revenue
400
Learning & Growth Perspective - Define
Can we continue to improve and create value.
500
Balance Scorecard
A performance evaluation system designed by Kaplan and Norton that integrates financial and operational performance measures along four perspectives: financial, customer, internal business, and learning and growth.
500
What is Vertical integration?
The practice of purchasing other companies within one's supply chain.
500
Investment Centers are responsible for efficiently managing the ?
Divisions assets
500
Residual Income
Operating Income - (Target rate of Return X total assets)
500
Definition of Lead indicators
Performance measures that predict future performance.