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The Discipline of Creating a Balanced Scorecard Forces Companies to Integrate

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Essay

The discipline of creating a Balanced Scorecard forces companies to integrate what two functions


Definitions:

Units Produced

The total number of finished units that have been manufactured during a specific time period.

Fixed Cost Per Unit

The cost that remains constant in total but varies inversely with the level of production or sales volume.

Relevant Range

The range of activity or volume over which the assumptions about variable and fixed cost behaviors hold true, beyond which cost patterns may change.

Cost Behavior

The way in which a cost reacts to changes in the level of activity.

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