Whereas the Scorecard Identifies Financial and Non-Financial Areas of Performance

question 55

Short Answer

Whereas the scorecard identifies financial and non-financial areas of performance, the second step in the scorecard process is the development of a ______________.

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Definitions:

Return On Investment

A metric used to evaluate the efficiency of an investment or to compare the efficiencies of several investments.

Cost-Based Transfer Prices

A pricing method used within a company for goods and services sold between its different divisions, based on the costs incurred in producing those goods or services.

Actual Costs

The genuine and overall expenses incurred for materials, labor, and overhead in producing a product or providing a service.

Standard Costs

Standard costs refer to the predetermined costs associated with manufacturing a product or providing a service, serving as a benchmark for assessing performance.