Performance management Flashcards
1
Q
What is exception reporting?
A
Reporting only of variances which exceed a certain value
2
Q
What is a style of performance evaluation not identified in Hopwood’s studies?
A
Revenue focused
3
Q
What does an investment centre manager have control over?
A
- Transfer prices
- Level of inventory in the division
- Discretionary fixed costs incurred in the division
4
Q
What perspective is not monitored in the balance scorecard approach?
A
Suppliers
5
Q
What is a flexible budget?
A
A budget which shows the costs and revenues at different levels of activity
6
Q
What has the highest degree of autonomy?
A
Investment centres
7
Q
What has the lowest degree of autonomy?
A
Cost centres
8
Q
What is the key KPI for the environment?
A
Percentage change in utilities usage since last year
9
Q
What is the key KPI for social?
A
Number of customer complaints
10
Q
What is the key KPI for governance?
A
Number of women on the board
