About This Chapter
Performance Measurement in Accounting - Chapter Summary
Refresh your knowledge of performance measurement concepts you haven't explored in awhile without setting foot in a classroom. This chapter brings the lessons to your computer or mobile device, enabling you to study this subject area in a secure, online environment. Examine lessons that review various forms of analysis, residual income and more. When finished, you will be able to do the following:
- Define product profitability analysis, and discuss its uses, advantages and disadvantages
- Explain the meaning and basics of business unit profitability analysis
- Share advantages and disadvantages of customer profitability analysis
- Discuss the definition of and formula for return on investment
- Provide two definitions of residual income
- List key performance indicators in program management
- Describe the balanced scorecard and how it is used by businesses
Don't search the Internet for study resources when you can find all you need to know about performance measurement in one place! This chapter's lessons give you a quality understanding, while short lesson quizzes confirm your comprehension. The Ask Our Experts feature allows you to submit lesson topic questions to our experts when you need additional details. The practice exam ensures you understand concepts covered in each lesson of this chapter.
1. Product Profitability Analysis: Definition & Examples
This lesson will discuss profitability on a per-product basis. We will define product profitability analysis, provide examples, benefits and disadvantages of the process.
2. Business Unit Profitability Analysis: Definition & Examples
It is the goal of a business to make a profit, but how can we determine the impacts of individual units on the bottom line? This lesson will discuss methods for analyzing business unit profitability and provide examples.
3. Customer Profitability Analysis: Definition & Examples
Would a business ever want to 'fire' a customer? In this lesson, we'll discuss customer profitability analysis, including its advantages and disadvantages and we'll provide usage examples.
4. Return on Investment: Definition, Formula & Example
Return on investment is a crucial analytical tool used by both businesses and investors. In this lesson, you'll learn the basic formula, discover a variant used for shareholders, and be provided examples.
5. What Is Residual Income? - Definition, Model & Formula
Residual income is a highly attractive way to earn money. This lesson discusses two definitions of residual income and gives many examples of how residual income is earned.
6. Key Performance Indicators in Program Management
Key performance indicators help a company determine how well it is doing in reaching its goals and objectives. In this lesson, you will learn about key performance indicators and how to evaluate them.
7. The Balanced Scorecard Strategy
Many businesses use a balanced scorecard in everyday operations. In this lesson, we'll see what a balanced scorecard is and how and why it is used by businesses. We will also review a few examples.
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Other chapters within the Certified Management Accountant (CMA): Study Guide & Test Prep course
- Financial Statements Overview
- Financial Valuation, Recognition & Measurement
- Financial Strategic Planning
- Budgeting Concepts for Accountants
- Forecasting Techniques in Business
- Budgeting Methodologies in Accounting
- Annual Profit Planning
- Financial Projections
- Cost & Variance Measures in Performance Management
- Responsibility Centers & Reporting Segments
- Cost Measurement & Systems
- Overhead Costs
- Understanding Supply Chain Management
- Business Process Improvement
- Governance, Risk & Compliance in Accounting
- Accounting Systems Controls & Security Measures
- Accounting & Enterprise Information Systems
- Data Governance
- Technology-Enabled Finance Transformation
- Data Analytics
- Basic Financial Statement Analysis
- Profitability Analysis
- Financial Statement Special Issues
- Basics of Corporate Finance
- Capital Management Overview
- Corporate Restructuring
- International Finance Practices
- Business Decision Analysis
- Risk Management for Business
- Investment Decisions
- Accountant Professional Ethics
- Certified Management Accountant (CMA) Flashcards