Developed by Robert Kaplan and David Norton, the ________________ Helps

question 30

Short Answer

Developed by Robert Kaplan and David Norton, the ________________ helps managers define the performance categories that translate to the company's strategy and then managers translate those categories into metrics and track performance on those metrics.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and contribute to profit.

Variable Manufacturing Costs

Charges that fluctuate based on the volume of production, like components used in product assembly and wages for workers on the production line.

Variable Selling Expenses

Selling costs that fluctuate with sales volume, such as commissions for sales staff.

Break-Even Sales

The amount of revenue required to cover all fixed and variable expenses, resulting in zero profit.