{"id":129,"date":"2012-11-06T16:34:27","date_gmt":"2012-11-06T23:34:27","guid":{"rendered":"https:\/\/blogs.ubc.ca\/benlee\/?p=129"},"modified":"2013-10-11T11:38:27","modified_gmt":"2013-10-11T18:38:27","slug":"class-18-performance-management","status":"publish","type":"post","link":"https:\/\/blogs.ubc.ca\/benlee\/2012\/11\/06\/class-18-performance-management\/","title":{"rendered":"Class #18 (Performance Management)"},"content":{"rendered":"<p><strong>Inventory Ratio<\/strong><\/p>\n<p>Having a better inventory turnover may not be beneficial to the firm. For example, a decrease in price can achieve better inventory ratio but may not help the firm to increase marginal profit at all.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Organizational Structure<\/strong><\/p>\n<p>Centralization vs. Decentralization<\/p>\n<p>Which one is better? It depends<\/p>\n<p>&nbsp;<\/p>\n<p>How could the structure be built?<\/p>\n<p>Divisional structure is based upon:<\/p>\n<p>&#8211; Region<\/p>\n<p>&#8211; Product<\/p>\n<p>&#8211; Function (activity)<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Responsibility accounting (divisions are evaluated)<\/p>\n<p>Cost centers<\/p>\n<p>&#8211; Assess actual cost vs. Budgeted costs<\/p>\n<p>Profit centers<\/p>\n<p>&#8211; Assess targeted profit vs. actual profit<\/p>\n<p>&#8211; But this does not measure anything else such as investments, operations, etc.<\/p>\n<p>Revenue centers<\/p>\n<p>&#8211; Assess revenue target vs. actual revenue<\/p>\n<p>&#8211; But costs are not included<\/p>\n<p>Investment centers (return on investment)<\/p>\n<p>&#8211; Profit \/ Investment base<\/p>\n<p>&#8211; But people may be too scared to make a move<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inventory Ratio Having a better inventory turnover may not be beneficial to the firm. For example, a decrease in price can achieve better inventory ratio but may not help the firm to increase marginal profit at all. &nbsp; Organizational Structure Centralization vs. Decentralization Which one is better? It depends &nbsp; How could the structure be [&hellip;]<\/p>\n","protected":false},"author":14683,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[326968],"tags":[819828],"class_list":["post-129","post","type-post","status-publish","format-standard","hentry","category-class-notes","tag-comm-101-104"],"_links":{"self":[{"href":"https:\/\/blogs.ubc.ca\/benlee\/wp-json\/wp\/v2\/posts\/129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.ubc.ca\/benlee\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.ubc.ca\/benlee\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.ubc.ca\/benlee\/wp-json\/wp\/v2\/users\/14683"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.ubc.ca\/benlee\/wp-json\/wp\/v2\/comments?post=129"}],"version-history":[{"count":3,"href":"https:\/\/blogs.ubc.ca\/benlee\/wp-json\/wp\/v2\/posts\/129\/revisions"}],"predecessor-version":[{"id":183,"href":"https:\/\/blogs.ubc.ca\/benlee\/wp-json\/wp\/v2\/posts\/129\/revisions\/183"}],"wp:attachment":[{"href":"https:\/\/blogs.ubc.ca\/benlee\/wp-json\/wp\/v2\/media?parent=129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.ubc.ca\/benlee\/wp-json\/wp\/v2\/categories?post=129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.ubc.ca\/benlee\/wp-json\/wp\/v2\/tags?post=129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}