1.
Speed to market: Speed to market determines the amount of time taken by the companies to introduce or launch new products into the market. The highly competitive market requires companies to be proactive in introducing new products into the market.
The action taken by the research and development department to improve the average amount of time taken to develop the product.
2.
Elapsed time: Elapsed time is the time consumed from the start of an event to the end of the event. Average elapsed time is the average time gap between the airplane landing and unloading the entire luggage from the airplane.
The performance measure taken to reduce the average elapsed time.
3.
Late shipment: The shipment of the order will be considered a late shipment if the company is unable to ship the product within the promised date. This would lead to customer dissatisfaction and a bad reputation for the company.
The performance measure to avoid the late shipment of the orders.
4.
Revenue per employee: This is an efficiency ratio that is used to determine the revenue generated per employee. It helps to determine the efficiency of an employee to generate revenue for the company.
The performance measure to increase the revenue per employee.
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MANAGERIAL ACCOUNTING (LL) W/CONNECT >C<
- Which of the following is not a criticism of using ROI as the only performance measure? 16 Multiple Cholce Ask It may Incentivize short-term decisions at the expense of long-term planning It may Incentivize employees to act in ways that are consistent with the overall goals and objectives of the organization. It may Incentlvize decistons that are effective at the divislon-level, but not necessartly at the enterprise-level It may be too rellant on subjective or arbitrary allocations of capital.arrow_forwardQuestion 18 3 pts Which of the following is NOT likely to happen if the costs of support departments are never allocated to operating departments? O User departments are more likely to outsource their needed services externally. O Support departments may not control their service costs and quality efficiently. O Product costs may be understated. O Operating departments may abuse or waste internal services. Nextarrow_forwardQUESTION 13 Resilience in the case of a corporate means: O Increasing efficiency of production by re-structuring the company Contracting out much of the production process to reduce costs Considering short-term improvements in logistics to cut costs A shift from a just in time' production system to a 'just in case' systemarrow_forward
- Why might relevant costs analysis be bad for a company if used too frequently? Multiple Choice It overemphasizes short-term goals and neglects long-term goals. It complicates the job of managers. It focuses too much on strategy and not enough on financial measures. It could lead to a permanent change in the production process of the company. It overemphasizes long-term goals and neglects short-term goals.arrow_forwardMatch the following statements to sides of the fraud triangle. v "Everyone fudges their numbers to look A.Opportunity better. If we don't, we're at a disadvantage." B. Rationalization C. Incentive "Do you know that our division manager gets a larger bonus if we achieve our division profit goals? We should try to do it to help her out." v "We'need to make these sales targets or our stock price will fall." v "I like to hire employees who are loyal to me. 11 "We work really hard around here, so even if we cut a few corners it is still okay." "The accounting manager knows that I prefer some reports to come directly to me, rather than to internal audit."arrow_forwardQUESTION 36 A company compensates its sales manager in such a way that the sales manager honestly provides a sales target (forecast). The company’s compensation method is: C = j T + k (A – T), (if A ≥ T) j T – m (T – A), (if A < T) where, C = compensation; A = actual sales by sales manager; T = sales target provided by sales manager . In the above compensation method the coefficient "j" represents: A. the advantage of exceeding the target. B. the benefit of honestly setting the target. C. the penalty of not meeting the target. D. the penalty of not setting the target honestly.arrow_forward
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- When a company is decentralized, top management will have little time to focus on long-term strategy because they will be too focused on managing day to day operations. True O False Select all of the below that are advantages of decentralization. Decentralization allows companies to duplicate costs. Decentralization provides training. Decentralization improves customer and supplier relations. Decentralization improves motivation and retention.arrow_forwardMastery Problem: Target Income and Margin of Safety Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal. However, the goal of most companies is to make a profit. When a company decides that it wants to earn more than the break-even point of income, it must define the amount it thinks it will realistically make. By modifying the break-even equation, the sales required to earn a target or desired amount of profit may be computed. Complete the following: If a company makes $5 off of each unit it sells and has a target operating income of $5,000, then it must sell units. Similarly, if a company has a target operating income of $75,000 and knows that total expenses for the period will be $75,000, how much revenue must it earn to reach its target operating income? $ Units sold or revenue earned above and beyond the break-even point contributes to the margin of safety for a company. Margin of safety is a crude measure of risk, in that it serves as the…arrow_forward6. What of the following might result from dropping an unprofitable customer? a. Sales levels would decrease b. Future business relations could suffer c. Costs would decline d Costs could stay the same in the short-term e. All of the above bearrow_forward
- Accounting Information SystemsFinanceISBN:9781337552127Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan HillPublisher:Cengage Learning