CIA Part 2 - Chapter 2.6

Performance Measurement and feedback affects what 2 things?

1. Allocation of resources to organizational subunits 2. Decisions about manager' compensation, advancement, and future assignments

What are the 3 factors the analysis needs to address?

1. Cost 2. Quality 3. Speed of product development and delivery

Customer Measure includes what 6 things?

1. Customer retention rate 2. Dealer and distributor relationships 3. Marketing and selling performance 4. Prompt delivery 5. Quality 6. Market share

Learning, Growth and Innovation includes what 5 things?

1. Development of new products 2. Promptness of their introduction 3. Human resource development 4. Morale 5. Competence of work force

What are the 4 balance scorecard measure categories?

1. Financial 2. Customer 3. Internal 4. Learning, Growth and Innovation

What are the 3 external factors?

1. Government regulations 2. Advances in technology 3. Demographic changes

In a Performance Audit, the internal auditor may assess the organization's ability to do what 3 things?

1. Measure its performance 2. Recognize deficiencies 3. Take corrective actions

what are the 3 types of measurements?

1. Nonfinancial and financial 2. Long term and short term 3. Internal and external

Effective Management control requires what 2 things?

1. Performance Measurement 2. Feedback

Internal Measure includes what 5 things?

1. Quality 2. Productivity (an input-output infrastructure) 3. Flexibility of response to changing conditions 4. Operating readiness 5. Safety

Financial Measure includes what 4 things?

1. Sales 2. Fair value of the organization's stock 3. Profits 4. Liquidity

What are the 6 internal factors?

1. Technologically advanced products 2. A broad product mix 3. Capable management 4. Leadership in R&D 5. Modern production facilities 6. Strong marketing organization

What are the 5 competitive conditions?

1. The number and strength of competitors in the industry 2. Changes in the intensity of rivalry within the industry (excessive production capacity) 3. The relative availability of substitutes for the organization's products or services 4. Bargaining power of customers 5. Bargaining power of suppliers

What is a Balance Scorecard?

A report that connects critical success factors determined in a strategical analysis with financial and nonfinancial measures of the elements of performance

How does an organization identify its critical factors?

Analysis that addresses 3 basic factors

Which of the following are related to how customers perceive a product and how competitors react: A. Profitability B. Customer Satisfaction C. Cycle Time D. Market Share

B. Customer satisfaction C. Market Share

Two examples of the learning and innovation measures of a balanced scorecard are: A. Number of employee suggestions and finished products per day per employee. B. Employee turnover rate and number of internal process improvements. C. Employee promotion rate and number of environmental incidents. D. Employee training hours and product defect rates.

B. Employee turnover rate and number of internal process improvements

On a balanced scorecard, which is more of an internal process measure than an external-based measure? A. Profitability B. Customer Satisfaction C. Cycle Time D. Market Share

C. Cycle Time

Which of the following balanced scorecard perspectives examines a company's success in targeted market segments? A. Learning and Growth B. Internal Business Process C. Financial D. Customer

D. Customer (Any critical success factor that addresses some aspect of the target market is included in the customer perspective)

What is internal measure?

Key processes that drive the business

What is customer measure?

Reflect customer needs and satisfaction

What is Learning, Growth and Innovation Measure?

The basis for future success (people and infrastructure)

What is cycle time?

The manufacturing time to complete an order

What may a performance audit provide assurance about?

The organization's key performance indicators

What is financial measure?

Ultimate results provided to owners

The balance scorecard focuses attentions on factors that are what?

Vital to future success