Define Critical Success Factors (CSFs) and Key Performance Indicators (KPIs)

question 89

Essay

Define critical success factors (CSFs) and key performance indicators (KPIs), and explain how managers use them to measure the success of MIS projects.

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Definitions:

High-Low Method

A technique used in cost accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.

Mixed Cost

Mixed cost refers to a cost that contains both variable and fixed cost elements, meaning it changes with the level of activity but not directly proportionate.

Activity Level

The volume of work or output produced, often used in costing and budgeting processes to measure levels of operations.

Total Cost

The complete cost of production, combining all costs of inputs and expenditures related to producing something, including direct, indirect, fixed, and variable costs.