Assume You Are Evaluating a Manufacturing Company

question 68

Essay

Assume you are evaluating a manufacturing company.Match the various organizational activities and concepts with the performance measures listed.Some items may have more than one match.
Activities:
1.Change in revenues
2.Cycle time
3.Economic order quantity
4.Manufacturing defects
5.Market share
6.New products
7.On-time delivery
8.Operating income
9.Product reliability
10.Time-to-market
Performance measure:

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Definitions:

Target Income

The profit amount that a company aims to achieve within a specific period.

Required Sales

The volume of sales necessary to achieve a specific financial objective, such as covering costs or reaching a target profit.

Contribution Margin

It is the amount by which sales revenue exceeds variable costs. It contributes towards covering fixed costs and generating profit.

Variable Expenses

Costs that vary in direct proportion to changes in an activity level or volume, such as sales commissions.