Chapter 14 (Operational Performance Measurement) Argues That a Comprehensive Management

question 115

Essay

Chapter 14 (Operational Performance Measurement) argues that a comprehensive management accounting and control system would include nonfinancial as well as financial performance indicators. Two such nonfinancial performance indicators were discussed in conjunction with organizations that adopt a just-in-time (JIT) production philosophy: customer-response time (CRT) and process cycle efficiency (PCE). Explain each of these two performance indicators.

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Definitions:

Marriott

An international hotel and lodging company known for its wide range of accommodations and hospitality services.

Outraged

Feeling strong anger, shock, or indignation, often as a reaction to something perceived as unjust or offensive.

Abandoned

In contract law, the condition that exists when a minor has left home and given up all rights to parental support.

Garbage Man

A colloquial term for a sanitation worker who collects and disposes of waste and recycling from households and businesses.