Chapter 3- Strategic Performance Evaluation Flashcards
1
Q
Business Application of ABM
5 points
A
- Cost Reduction
- Activity Based Budgeting
- Business Process Reengineering
- Benchmarking
- Performance Measurement
2
Q
Steps in Bench Trending
5 points
A
- Market is defined - cust pref, size, competitors.
- Industry Direction- Tech Shift- GeoPol Changes- Cust Changes- Potential Threats.
- Strongest current & potential comp- evalutating trends
- Data- Comp perf - comparison
- Perf baseline- relative perf of current & proj comp
3
Q
Steps in BPR
5 points
A
- Develop Business Vision & Objectives
- Identify Process to be redesigned
- Understand & Measure Existing Process
- Identify IT Levers
- Design and Build Prototype of new process
4
Q
Objectives of Process Analysis
6 points
A
- Identify- difficulties
- Evaluate- Completeness
- Isolate - Bottlenecks
- Find - Redundancies
- Examine- Resource Allocation
- Measure - Process Times
5
Q
Limitations of Value Chain Analysis
5 points
A
- Non Availability of Data
- Identification of Stages
- Ascertainment of certain costs
- Identification of cost drivers
- Resistance from employees
6
Q
Management Accountant role in VCA
5 points
A
- Need for education & training & awareness
- Exploring information
- Creativity
- System Design
- Co operation
7
Q
Principles of target costing
6 points
A
- Price Led
- Customer focus
- Design - product and process
- Cross functional teams
- Life cycle cost reduction
- Value chain involvement
8
Q
Cost Acc role in target costing
6 points
A
1 . Cost Estimation
- Permissible cost ranges
- Capital Budget Analysis
- Cost Principles Expansion
- Review of Cost Reduction Targets
- Final Review and Feedback
9
Q
Cost Acc role in ABM
3 chunks
A
CreationMaintainenceAssurance- CMA
CreationTargetStrategic- CTS
CreationOngoingAnalysis- COA
10
Q
Importance of product life cycle costing
7 points
A
- Time based analysis
- Overall cost analysis
- Effective pricing decisions
- Better decision making
- Life cycle budgeting
- Review
- Long run holistic view
