EVALUATION AND CONTROL Flashcards
MEASURING PERFORMANCE
The end result of activities,
actual outcomes of a strategic management
process.
Performance:
APPROPRIATE MEASURES
Measures of variables that
influence future profitability.
Steering control:
APPROPRIATE MEASURES
in which a retailer’s
cost of goods sold is divided by the average
value of its inventories.
Inventory turnover ratio:
TYPES OF CONTROLS
Output control:
Behavior control:
Input control:
TYPES OF CONTROLS
A control that specifies what is
to be accomplished by focusing on the end result
of the behaviors through the use of objectives
and performance targets.
Output control:
TYPES OF CONTROLS
A control that specifies how
something is to be done through policies, rules,
standard operating procedures, and orders from a
superior.
Behavior control:
TYPES OF CONTROLS
A control that specifies
resources, such as knowledge, skills, abilities,
values, and motives of employees.
Input control:
An accounting
method for allocating indirect and fixed costs to
individual products or product lines based on the
value-added activities going into that product
Activity-based costing (ABC):
(ABC):
Activity-based costing
A
corporatewide, integrated process to manage the
uncertainties that could negatively or positively
influence the achievement of the corporation’s
objectives.
Enterprise risk management (ERM):
