Listed below are eight terms: Residual income Balanced scorecard Return on investment Management compensation Return on sales Stock options Capital turnover Business process lens Each of the following statements may (or may not) describe one of these terms. For each statement, indicate the term de answer “none" if the statement does not correctly describe any of these terms. a. Tells managers the incremental operating earnings for each additional sales dollar. b. The focus of this business performance measurement is the sales dollars earned from each invested dollar. C. A tool used by managers and owners of organizations to align managers' goals with those of the organization. d. This method considers all costs borne by the consumer from purchase to disposal of a product. A business performance measurement that takes into account the minimum required return on the assets e. employed. Measures for this category of business performance are associated with eliminating non-value-added costs f. from the value chain. A method in which a product's selling price is determined by adding a fixed amount to the product's current g. production cost. This performance evaluation method is criticized for motivating managers, in some instances, to ignore h. investments that are in the best interest of the company as a whole. An important aspect of this method is the consideration of the many perspectives of the multiple stakeholders in an organization.
Listed below are eight terms: Residual income Balanced scorecard Return on investment Management compensation Return on sales Stock options Capital turnover Business process lens Each of the following statements may (or may not) describe one of these terms. For each statement, indicate the term de answer “none" if the statement does not correctly describe any of these terms. a. Tells managers the incremental operating earnings for each additional sales dollar. b. The focus of this business performance measurement is the sales dollars earned from each invested dollar. C. A tool used by managers and owners of organizations to align managers' goals with those of the organization. d. This method considers all costs borne by the consumer from purchase to disposal of a product. A business performance measurement that takes into account the minimum required return on the assets e. employed. Measures for this category of business performance are associated with eliminating non-value-added costs f. from the value chain. A method in which a product's selling price is determined by adding a fixed amount to the product's current g. production cost. This performance evaluation method is criticized for motivating managers, in some instances, to ignore h. investments that are in the best interest of the company as a whole. An important aspect of this method is the consideration of the many perspectives of the multiple stakeholders in an organization.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 12.4E
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Transcribed Image Text:Exercise 25.1 (Static) Accounting Terminology (LO25-2, LO25-3, LO25-4, LO25-5, LO25-6)
Listed below are eight terms:
Residual income
Balanced scorecard
Management compensation
Return on sales
Return on investment
Stock options
Capital turnover
Business process lens
Each of the following statements may (or may not) describe one of these terms. For each statement, indicate the term des
answer “none" if the statement does not correctly describe any of these terms.
a.
Tells managers the incremental operating earnings for each additional sales dollar.
b.
The focus of this business performance measurement is the sales dollars earned from each invested dollar.
C.
A tool used by managers and owners of organizations to align managers' goals with those of the organization.
d. This method considers all costs borne by the consumer from purchase to disposal of a product.
A business performance measurement that takes into account the minimum required return on the assets
e.
employed.
Measures for this category of business performance are associated with eliminating non-value-added costs
f.
from the value chain.
A method in which a product's selling price is determined by adding a fixed amount to the product's current
g.
production cost.
This performance evaluation method is criticized for motivating managers, in some instances, to ignore
h.
investments that are in the best interest of the company as a whole.
An important aspect of this method is the consideration of the many perspectives of the multiple stakeholders
in an organization.
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