Control systems and performance measurement
9 important questions on Control systems and performance measurement
Benefits of non-financial measures
* They provide indirect quantitative information on a company's intangible assets
* They can be good indicators of future financial performance
* They can improve manager's performance by providing more transparent evaluation of their
actions
Costs of non-financial measures
* They do not have a common denominator and entail different denominators such as time,
percentage, quantities etc.
* They sometimes lack verifying links to accounting profits or stock prices and may have
weak statistical reliability.
* They may be too numerous to translate into main drivers of succes
Alternative definitions of Investment
(All assets are included)
2. Total assets employed
(Total assets - idle assets - assets purchased for future expansion)
3. Working capital + long-term assets)
(Current assets - current liabilities
4. Shareholders' equity
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!
I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.
Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.
Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!
Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!
Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!
I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.
I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.
For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!
I immediately started to enjoy learning again, and my grades soared. All of a sudden, everything went better. I highly recommend Study Smart to all students..
Being able to create my materials online made the process of studying so much smoother and quicker. I no longer have to spend a huge amount of my time on creating my summaries.
At first, my notes were a mess. Now I use Study Smart to take my notes in a perfectly structured way. It helps me to save a lot of time and do other things I enjoy.
Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.
Hi Chris, I would like to thank you very much. Last year I scored C on a course, and this year I got an A+ thanks to your method! Thank you very much!
The largest effect is that my child is more enthusiastic about school! Every parent wants their children to be happy at school, Study Smart made it happen.
In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past
With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.
Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.
4 Approaches of performance measures
2. Residual income (RI)
3. Economic value (EVA)
4. Return on sales (ROS)
The Dupont method for analysis of profitability
This method recognizes that there are 2 basic ingredients in profit making:
1. using assets to generate more revenue
2. increasing income per euro of revenue
An improvement in either ingredient without changing the other, increases return on investment.
Examples of reducing investments
no income for the owner
* Managing credit carefully
* Determining proper stock levels
* Spending carefully on fixed assets
Return on sales (ROS)
Return on sales (ROS) % = Operating profit / Revenues (sales)
ROI based on Net book value vs Gross book value
Steps in designing an accounting-based performance measure
2. Defining the terms
3. Measuring the items included in the variables
4. Choosing a target for performance
5. Choosing the timing of feedback
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
