BUS510-Module 6- 02`192013 - Performance Evaluation and the Balanced Scorecard 1 BUS510 2011 CH MODULE 6 Feb 19th 2013 1 Complete and analyze a

BUS510-Module 6- 02`192013 - Performance Evaluation and the...

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Performance Evaluation and the Balanced Scorecard 1 BUS510 2011 CH MODULE 6 Feb 19 th 2013 1. Complete and analyze a performance report. Profit centers are responsible for controlling costs and generating revenue. Therefore performance reports contain actual and budgeted information on both revenues and costs. In addition to the performance report. A cost center may be evaluated on KPI’s such a cost per unit of output. Cost Center performance Reports - Cost center performance reports typically focus on the flexible budget variance the difference between actual results and the flexible budget. Because the payroll processing department only incurs expenses and does not generate revenue, it is classified as a cost center. Managers use management by exception to determine which variance in the performance report are worth investigating .for example, management may investigate only those variances that exceed a certain dollar amount or a certain percentage of the budgeted figure . Smaller variances signal that operations are close to target and do not require managements immediate attention. For example, in the cost center. As discussed

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