5.1 Control Purposes and Performance Measurement

Question 1

Profit?

Answer 1

Sales revenue - cost of sales

Question 2

measures of profit?

Answer 2

Gross margin
Net margin
(gross) makeup

Question 3

what is profitability measured in terms of?

Answer 3

Return of Capital Employed (ROCE)

total assets - current liabilities

Question 4

Percentage of Sales, Less Cost and Profit when you calculate Profit margin (20%)?

Answer 4

Sales - 100%
Less Cost - 80%
Profit - 20%

Question 5

Percentage of Sales, Less Cost and Profit when you calculate Profit mark - up (20%)?

Answer 5

Sales 120%
Less Cost 100%
Profit 20%

Question 6

For Non-Profit (NFP) Organisations what are the 3 VFMs (Value for Money) Es?

Answer 6

Effectiveness - achievement
Economy - reduction of cost
Efficiency - effective at minimum cost

Question 7

What are performabce mesures comparede to?

Answer 7

Budgets, targets adn standards
trends over time (last year)
Reults of other parts of business (stores in chain)
Results of other businesses (Benchmarking)

Question 8

What are CSFs? best number?

Answer 8

thos eproduct features that are particulary valued by group of customers adn therefore where the organisation must excel to outform the competetion.

6

Question 9

what are KPIs?

Answer 9

Key performance indicators are performance sandards used to measure the achievement of CSFs

Question 10

what is benchmarking?

What do you bench mark against?

Answer 10

a way of setting a KPI

gathering data to form targets adn comparators so that you relative level of performance can be identified.

best practice - you performce will hopefully improve

Question 11

What is the GRI?`

Answer 11

Gloabl Reportig Initittive - global, volentary code for corperate responsibility.

Question 12

What are the trhee GRI performance indicators (KPIs?)

Answer 12

Economic
Environmental
Social

Question 13

wha is a Balance Sore Card

Answer 13

in intergrated (financial/non-financial) set of performance measures linked to achievement of strategic objectives.

i.e. establishing critical success factors adn measure using key perfromce indicators

Question 14

what re the 4 BSC perspectives?

Answer 14

Customers.
Internal buiness processes
Innovation and learning (training and devel)
Financial

Question 15

What are the 2 diiferent types of BSC meaures?

Answer 15

Qualitive - subjective, judgemental

Quantitative - Financial adn non-financial