Technical article - Decentralisation and the need for performance measurement Flashcards
1
Q
What is the managers area of responsibility for a cost centre?
A
Decisions over cost
2
Q
What is the managers area of responsibility for a profit centre?
A
Decisions over costs and revenue
3
Q
What is the managers area of responsibility for an Investment centre?
A
Decisions over costs , revenues and assets.
4
Q
What is a typical performance measure for a cost centre?
A
Standard costing
Variance analysis
5
Q
What is a typical performance measure for a profit centre?
A
Controlable profit
Profit margins etc
6
Q
What is a typical performance measure for an Investment centre?
A
ROI
RI
7
Q
What are the four aspects of the balanced scorecard?
A
Financial
Customer
Internal process
Learning and Growth
