Accounting Business Reporting for Decision Making

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

14.1 explain the importance of measuring organisational performance and outline common

frameworks and reports used to assess and report organisational performance

14.2 outline common organisational structures, responsibility centres and reasons for divisional

performance evaluation and generate divisional performance reports

14.3 apply investment-centre performance evaluation measures such as return on investment (ROI),

residual income (RI) and economic value added

14.4 examine the use of environmental and social performance measurement

14.5 discuss the issues surrounding individual performance measurement

14.6 assess the use of non-financial performance measures.

CHAPTER 14

Performance

measurement

Contents

Chapter 14 preview

14.1 Organisational performance measurement

14.2 Divisional performance measurement

14.3 Investment centre performance evaluation

14.4 Environmental and social performance

14.5 Individual performance measurement

14.6 Non-financial performance evaluation