Flashcards
Chapter 14 Key Terms
Flashcards do conjunto (17)
- 1Asset TurnoverA ratio measuring asset productivity and showing the number of sales dollars generated by each dollar of assets
- 2Carbon FootprintA reflection of the total of all greenhouse gas emissions created by an organization's activities during a specified time
- 3Compensation StrategyA foundation for the compensation plan that addresses the role compensation should play in the organization
- 4Du Pont ModelA computation that indicates the return on investment as it is affected by profit margin and asset turnover
- 5Economic Value Added (EVA®)A measure of the extent to which income exceeds the dollar cost of capital; calculated as income minus (invested capital times the cost of capital percentage)
- 6Employee Stock Ownership Plan (ESOP)A profit-sharing compensation program in which investments are made in an employer's stock(s)
- 7ExpatriateA parent company or third-country national assigned to a foreign subsidiary, or a foreign national assigned to the parent company
- 8Lag (or Lagging) IndicatorA (generally) financial outcome assessed by historical data that has resulted from past actions or decisions
- 9Lead (or Leading ) IndicatorA financial or nonfinancial outcome (including opportunities and problems) that helps assess strategic progress and guide decision making before lag indicators are known; statistical data about the actionable steps that will create desired results
- 10Process ProductivityThe total number of units produced during a period during value-added processing time
- 11Process Quality YieldThe proportion of good units that resulted from the activities expended
- 12Profit MarginThe ratio of income to sales
- 13Residual Income (RI)The profit earned by a responsibility center that exceeds an amount “charged” for funds committed to that center
- 14Tax DeferralA tax treatment in which income is subject to tax in a future period
- 15Tax ExemptionA tax treatment in which income is never subject to income taxation
- 16ThroughputThe total output that is completed and sold during a period
- 17Values StatementA statement reflecting an organization's culture by identifying fundamental beliefs about what is important to that organization