Examlex

Solved

In a Strategic-Based Responsibility Accounting System, Stretch Targets Are Established

question 77

True/False

In a strategic-based responsibility accounting system, stretch targets are established for individual performance measures.


Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as net profit divided by the cost of the investment.

Margin

The difference between the selling price of a product and the cost of the product, representing profitability.

Sales

The total revenue earned from the sale of goods or services related to a company's primary operations.

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as value-added time divided by the total cycle time.

Related Questions