1A2 - Nonfinancial and Non-GAAP Measures of Performance Flashcards
1
Q
Cost of Quality (COQ)
A
Cost analysis that measures and monitors quality costs in 4 areas:
- Prevention
- Appraisal (costs of monitoring the level of bad quality, ex. product testing)
- Internal Failure
- External Failure
2
Q
Economic Value Added (EVA)
A
after tax operating income less the WACC
3
Q
Profit Margin
A
Is the ratio of INCOME TO SALES.
Profit margin indicates the portion of each sales dollar that a company generates as profit.
4
Q
Investment Turnover
A
Investment turnover is the ratio of sales to capital invested.
5
Q
ROI (Return on Investment)
A
Net Income / Investment
