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Business LibreTexts

9.1: Chapter 9 Study Plan (update)

  • Page ID
    10653
  • Study Plan: Performance Measurement

    Knowledge Targets

    I can define the following terms as they relate to our unit:

    Decentralized
    Profit Center
    Cost Center Investment Center
    Return on Investment Operating Assets Margin
    Balanced Scorecard
    Turnover
    Residual Income Rate of Return Operating Income
    Wait Time
    Value-added Throughput Time Economic Value Added
    Non-value added
    Delivery Cycle Time Manufacturing Cycle Time

    Reasoning Targets

    • I can understand the difference between profit center, cost center and investment centers.
    • I can understand the meaning of delivery cycle time, throughput time and manufacturing cycle efficiency.
    • I can understand how to use a balanced scorecard.
    • I can analyze projects or departments using return on investment and residual income.

    Skill Targets

    • I can calculate return on investment, margin and turnover for a company.
    • I can calculate residual income for a company.
    • I can compute delivery cycle time, throughput time and manufacturing cycle efficiency.
    • I can construct a balanced scorecard.