Corporate Finance
________ provides a set of quality standards that relate to environmental management
ISO 14000
_______ is the set of international quality-management standards, which provide guidance and tools for organizations that want to ensure quality outputs of goods and services
ISO 9000
benchmarks established by top management productivity of another firm in the same industry ind std avg past prod measures of the firm these are all ______ that firms use in assessing productivity
benchmarks
Under the notion of controllability, it is most appropriate for top management to evaluate the profitability of an investment center in terms of profits generated in relation to the amount of ______ invested in the unit
capital
a dividend reinvestment plan (DRIP) tax-free ______ dividends
cash
utilization of expertise of top management is among the benefits of ________ management in a firm
centralized
risk aversion by managers should be recognized when revising compensation plans because _______ can influence a manager's risk aversion
compensation mix (salary/bonus)
a key criterion for including an asset in the return on investment (ROI) calculation is the degree to which the business unit ______ the asset
controls
________ is the difference between the actual features of the product (or service) and the features that the consumer wants
design failure
the balanced scorecard critical success factors (CSFs) provide strong motivation in bonus compensation plans if noncontrollable factors are _______.
excluded
in developing compensation plans, the management accountant works to achieve ______ by making the plan simple, clear and consistent
fairness
an advantage of ROI and RI is that they both measure short-term financial performance of investment centers: revenues, costs, and _______.
investments
Objectives of management control of the manager include ______, ________, and _______.
motivation, incentive, fairness
rules recently established by the securities and exchange commission include a "say on pay" rule that requires ________ votes on executive pay
nonbinding shareholder
How do you calculate productivity?
output/input
______________ is the process by which managers at all levels in the firm gain information about the performance of tasks within the firm and judge that performance against pre-established criteria
performance measurement
___________________ is the most appropriate and comprehensive short-term financial performance indicator available for an investment center that is a division of a larger business entity.
residual income (RI)
deviations in market size and market share are two major contributing factors to a _____ variance
sales quantity
the need for coordination between the production and the ______ function will impact the choice of profit, cost, or revenue centers
selling
performance evaluation in most firms is applied at many different levels from _______ down to individual production and sales employees
top management
any system of compensation may encourage ________ behavior
unethical
efforts to improve productivity should be focused only on ______ activities
value added
a 6-sigma performance level would translate to how many defects per million?
0.001
_______ is the ratio of output units to the number of units of an input factor
Operational productivity
a common characteristic among control charts, histograms, Paredo diagrams, and cause-and-effect diagrams is that they are all visual representations that allow us to detect _________________ problems
Quality-related
conventional return on investment performance measure calculates profit and investment based upon _________ principles
US Generally Accepted Accounting Principles (GAAP)
