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Definition
| the systematic process through which managers regulate organizational activities to make them consistent with expectations established in plans, targets, and standards of performance |
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| it is a comprehensive mgmt control system that balances the traditional financial measures with operational measures relating to the company's critical success factors |
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| 4 major perspectives of a balanced scorecard |
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Definition
1. financial performance
2. customer service
3. internal business processes
4. learning and growth capacity |
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Definition
| this sector of the balanced scorecard focuses on production and operating statistics (such as order fulfillment or cost per order) |
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| steps of feedback control |
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Definition
1. establish strategic goals
2. measure actual performance
3. compare performance to standards
4. take action/ provide feedback & reinforcement |
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Term
| a budget is created for every... |
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Definition
| division or dept within an organization |
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Definition
| an organizational unit under the supervision of a single person who is responsible for its activity |
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Definition
| a budget that outlines the anticipated and actual expenses for a responsibility center |
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| a budget that identifies the forecasted and actual revenues of the organization |
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Definition
| a budget that estimates and reports cash flows on a daily or weekly basis to ensure that the company has sufficient cash to meet its obligations |
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Definition
| a budget that plans and reports investments in major assets to be depreciated over several years |
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Definition
| a budgeting process in which middle- and lower-level mgmt must set departmental budget targets in accordance with overall company revenues and expenditures specified by top mgmt |
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Definition
(one of the most commonly used methods of control)
is the process of setting targets for an organization's expenditures, monitoring results and comparing them to the budget, making changes as needed |
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Definition
| a budgeting method in which lower-level managers budget their dept's resource needs and pass them up to top mgmt for approval |
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Definition
| a financial statement that shows the firm's financial position with respect to assets and liabilities at a specific point in time |
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Definition
| a financial statement that summarizes the firm's financial performance for a given time interval; sometimes called a profit-and-loss statement |
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| a financial ratio that indicates the organization's ability to meet its current debt obligations |
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Definition
| a financial ratio that measures that measures the organization's internal performance with respect to key activities defined by mgmt |
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Definition
| a financial ratio that describes the firm's profits in terms of a source of profits-- ex) sales or total assets |
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Definition
| Return on Assets-- a percentage representing what a company earned from its assets... computed as NI/total assets |
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Definition
| the use of rules, policies, hierarchy of authority, reward systems, and other formal devices to influence employee behavior and assess performance |
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Definition
| the use of organizational culture, group norms, and a focus on goals, rather than rules and procedures, to foster compliance with organizational goals |
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Definition
| sharing financial information and results with all employees in the organization |
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Definition
offers some indication of the degree to which various countries are open regarding economic matters
higher= more hidden economy |
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Definition
| an organization wide commitment to infusing quality into every activity through continuous improvement |
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Definition
| a group of 6-12 volunteer employees who meet regularly to discuss and solve problems affecting the quality of their work |
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Definition
| the continuous process of measuring products, services, and practices against major competitors or industry leaders |
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Definition
| a quality control approach that emphasizes a relentless pursuit of higher qual and lower costs |
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Term
| six sigma is based on DMAIC |
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Definition
D- define
M- measure
A- analyze
I- improve
C- control |
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Definition
| the steps taken to complete a company process |
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Definition
| "kaizen"-- the implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis |
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Definition
| a set of standards that represent an international consensus of what constitutes effective quality management, as outlined by the International Organization for Standardization |
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| 4 new financial control systems |
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Definition
1. economic value-added
2. market value-added
3. activity-based costing
4. corporate goverance |
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Term
| economic-value added (EVA) |
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Definition
| a control system that measures performance in terms of after-tax profits minus the cost of capital invested in tangible assets |
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Definition
| a control system that measures the stock market's estimate of the value of a company's past and expected capital investment projects |
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| activity-based costing (ABC) |
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Definition
| a control system that identifies the various activities needed to provide a product and allocates costs accordingly |
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Term
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Definition
| the system of governing an organization so the interests of corporate owners are protected |
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