- GRA 6280
- 6 Credits
We begin by studying a comprehensive summary of cost definitions and classification. We look at how the usual fixed vs. variable costs classification can be enriched by showing the distinction between the cost of resource supplied and the cost of resources used. We then shift attention toward responsibility centres including: revenue, cost, profit and investment centres. Finally, we focus on the Balanced Score Card. We summarize a set of financial and non-financial performance measures tied to customers, innovation and operational processes, and enhanced employee and system capabilities.
Topic I: Responsibility centers and budgeting.
- Revenue and expense centers.
- Profit and investment centers and measuring profitability.
- Budget preparation process and quantitative techniques.
Topic II: Measuring and analyzing performance. Financial and non-financial indicators.
- Measurement of assets employed.
- Economic value-added (EVA) vs. Return on Investment (ROI).
- Variance analysis and its limitations.
- Balance score card
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