Class notes
CIMA BA2 Notes Chapter 9-Performance measurement
- Course
- Institution
CIMA BA2 Notes Chapter 9-Performance measurement
[Show more]
Seller
Follow
ellewoods2
Reviews received
Content preview
BA 2 - Fundamentals of Management AccountingPerformance measurement
Chapter nine
, 1
BA 2 - Performance measurement. Quantia Learning
, 2
Performance measurement is the monitoring of
budgets or targets against actual results to
establish how well the business and its employees
are functioning as a whole and as individuals.
Performance measurement is a very important
aspect of management accounting which involves
setting targets, measuring the actual performance
against those targets and providing information to
management regarding the outcome. This
information will be used by management to make
decisions about the organisation.
Performance measurement affects
behavior which in turn affects performance
targets and the interest of the organization
as a whole.
Performance can be measured at an
individual, departmental or organisation
level and the types of measurements used
will depend on the area being measured.
Responsibility accounting
In responsibility reporting, costs and revenues are grouped according to which individual
manager or management team is responsible for their control.
Here are some important keywords to remember:
● Cost centre - managers might be
interested in assessing the costs incurred
by a particular responsibility centre within
their area.
● Profit centre - managers might be
interested in assessing the profitability of a
particular product or service, in which case,
costs might be classified by nature so that
they can be traced to individual products or
services.
● Investment centre - managers will be interested in assessing the return being made by
a product or service centre in relation to the capital outlay for that product or service.
BA 2 - Performance measurement. Quantia Learning
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ellewoods2. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.09. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now