Explain two factors that should be considered when designing divisional performa-新东方在线职业题库

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Explain two factors that should be considered when designing divisional performance measures.

Chapter21Performancemeasurement

Factors that should be considered when designing divisional performance measures. These include:

Each measure should be simple to calculate and to understand so that managers can see the effect of the decisions that they make on the measurement of their division's performance.

Each measure should be fair to the manager of the division and only include items that are within their control.

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What does an adverse variable overhead efficiency variance indicate and what might be the cause?

Explain briefly the possible causes of

(i) A favourable material usage variance

(ii) A favourable labour rate variance

(iii) An adverse sales volume contribution variance.

What is the relationship between the labour efficiency variance and the variable overhead efficiency variance? Why might the monetary value be different?

Explain the meaning and relevance of interdependence of variances when reporting to managers.

A balanced scorecard measures performance 什om four perspectives: customer satisfaction, growth, financial success and process efficiency. Briefly explain these processes.

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Explain two factors that should be considered when designing divisional performance measures.