Nonfinancial performance measures
Diamond Inc. is an Internet retailer of woodworking equipment. Customers order woodworking equipment from the company, using an online catalog. The company processes these orders and delivers the requested product from its warehouse. The company wants to provide customers with an excellent purchase experience in order to expand the business through favorable word-of-mouth advertising and to drive repeat business. To help monitor performance, the company developed a set of performance measures for its order placement and delivery process:
Average computer response time to customer "clicks''
Dollar amount of returned goods
Elapsed time between customer order and product delivery
Maintenance dollars divided by hardware investment
Number of customer complaints divided by the number of orders
Number of misfilled orders divided by the number of orders
Number of orders per warehouse employee
Number of page faults or errors due to software programming errors
Number of software fixes per week
Server (computer) downtime
Training dollars per programmer
- A. For each performance measure, identify it as either an input or output measure related to the “order placement and delivery” process.
- B. Provide an explanation for each performance measure.
Want to see the full answer?
Check out a sample textbook solutionChapter 22 Solutions
FINANCIAL+MANG.-W/ACCESS PRACTICE SET
- How much will cedarwood need to borrow during November?arrow_forwardDetermine the second year depreciation using the straight line method on these financial accounting questionarrow_forwardWhich criterion establishes functional currency in multi-national operations? Country of incorporation Parent company currency Primary economic environment Transaction volume basisarrow_forward
- Brentwood Manufacturing forecasts that total overhead for the current year will be $12,000,000 and that total machine hours will be 240,000 hours. Year to date, the actual overhead is $13,200,000, and the actual machine hours are 260,000 hours. Suppose Brentwood Manufacturing uses a predetermined overhead rate based on machine hours for applying overhead as of this point in time (year to date). In that case, the overhead is?arrow_forwardOverview You have learned about big corporate fraud in this course such as Enron and WorldCom, but fraud can happen in any organization. Examine a case that addresses the importance of internal controls, including how the fraud triangle can aid in an investigation and how to find missing cash. Prepare View the media activity, Employee Fraud at Miami Rehabilitation CenterLinks to an external site.. It provides information about a case of fraud that you will address in the assignment. Instructions Based on what you discovered in the media piece, (not including cover and reference pages) paper that addresses the following: Like fuel, air, and heat come together to make fire, the likelihood of fraud increases when the three elements of the fraud triangle come together. Analyze how the 3 elements of the fraud triangle are important and how all 3 elements were present in Helen's case. In 2006, The Committee of Sponsoring Organizations (COSO) published a small company version of its 1992…arrow_forwardVariable manufacturing overhead:28000, fixed manufacturing overhead:120000arrow_forward
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeAccounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,