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)