Boarder Performance Evaluation Flashcards
1
Q
What are the 6 catergories of broader performance evaluation?
A
GCPRCC
- Growth
- Competitiveness
- Profitability
- Resource Utilisation
- CVP
- Cash
2
Q
What can we consider within the Growth evaluation?
A
MDGRSNC
- Market Share
- Diversity of Product line
- Growth in the amount of customers
- ROI
- Size of Revenue stream
- Number of employees
- Cash flow of operations
3
Q
what can we consider within Competitiveness evalution?
A
- differentiation in price, customers, flexibility and innovation
4
Q
What can we consider within the Profitability evaluation of the company?
A
- literally just anything on the profit and loss statement
- when you comment, basically just state reasons that they have told you in the scenario mostly
- increases in Revenue, or anything similiar
- Gross profit %
- operating Profit %
- Net Profit %
- Net working capital
- fixed costs/sales
- Return on assets
- return on equity
- overhead/sales
- fixed costs/ total cost
- variable costs over total costs
- admin costs/total costs
5
Q
What can we consider within the Resource Utilisation perspective?
A
- Capacity/ Productivity
- compare actual productivity to capacity
- Production/Total possible production * 100
- average collection period
- turnover employee numbers
- inventory turnover
- working capital ratios (debtors days, creditors days, inventory days
6
Q
What could be considered when evaluation from the cash perspective?
A
- Liquidity Calculations
- Current ratio
- Acid test ratio
- Cash generating ability
- Leverage and Gearing calculations
- Debt ratio
- Debt to Equity ratio
- Return on Capital employed
7
Q
what should be considered when evaluation the CVP perspective?
A
- Margin of Safety
- BEP
- Product Mix
- Variable costs and fixed costs
- selling price comparsion
8
Q
What are the other things that can lastly be considered for boarder performance evaluation?
A
- Customer satisfaction
- employee satisfaction
- effect on the environment
