Measurement Can Be Used to Create Alignment

question 21

True/False

Measurement can be used to create alignment. Three areas should be considered: alignment between strategy and measurement, alignment among measures used across functional areas, and alignment of measures employed up and down the supply chain.

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Definitions:

Selling and Administrative Expense

Costs related to the selling of products and the administration of a business, excluding manufacturing costs.

Master Budget

An inclusive financial planning document that consolidates all of a company’s individual budgets and plans for the upcoming fiscal period.

Production Budget

A financial plan that estimates the number of units that need to be manufactured to meet sales goals and inventory requirements.

Cash Budget

An estimate of cash inflows and outflows for a business or project over a specific period of time, used for managing liquidity and ensuring financial stability.