Course description

Performance Management - RESIT EXAMINATION


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.

Course content

Topic I: Responsibility centers and budgeting.

  • Introduction.
  • 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

Learning outcome knowledge

After completing this course, students will be able to understand the basics of performance evaluation systems and the key performance indicators within corporations.

The students will have an overview of:

  • the design and use of internal control mechanisms and
  • how to understand and interpret financial and non-financial measures used for managing companies including product and customer profitability as well as return indicators.

Exam organisation

  • Home exam: 100%