BU247 Lecture Notes - Marginal Cost, Cost Driver, Customer Satisfaction
Document Summary
Financial control: use of measures based on financial info to assess organization & mgmt. performance. The focus can be a product, product line, department, division, or entire organization. Financial control provides a counterpoint to the bsc view, which links financial results to their presumed drivers. In for-profit organizations, financial control looks at the drivers of profit such as the organization"s ability to use its assets effectively. In not-for-profit organizations, financial control looks at ability to use its resources in the most effective way to accomplish its service objectives. Financial control summarizes the financial results of operations& compares them to planned results. Bsc = quantify strategy and drive strategy down through organization"s hierarchy. The bsc"s cause- and-effect structure reflects mgmt. "s assessment of what drives success in achieving organizational objectives. In for-profit organizations, success is measured by generating good financial returns to capital suppliers, using metrics such as return on investment, earnings per share, etc.
