Performance MeasurementMeasuring divisional performance without distorting behaviour.Accounting & FinanceReturn on investmentProfit ÷ capital employed, as apercentageEasy to compare across divisionsRejects projects below currentROICan discourage good investmentResidual incomeProfit minus a capital chargeAbsolute figure, not a ratioAccepts any project above thechargeHarder to compare across sizesTHE DIFFERENCE THAT MATTERSA manager on ROI will reject a project earning above the cost ofcapital if it is below their current average. RI does not have that fault.The balanced scorecard adds customer, process and learningmeasures, on the argument that financial results are lagging indicators.Performance Measurementlearnposters.com
Performance Measurement — printable business wall chart from LearnPosters. Free vector PDF, US Letter and A4.

What’s on the Performance Measurement poster

Return on investment against Residual income, side by side.

The balanced scorecard adds customer, process and learning measures, on the argument that financial results are lagging indicators.

Questions about the Performance Measurement poster

What’s on the Performance Measurement poster?
Return on investment against Residual income, side by side. Return on investment: Profit ÷ capital employed, as a percentage; Return on investment: Easy to compare across divisions; Return on investment: Rejects projects below current ROI; Return on investment: Can discourage good investment; Residual income: Profit minus a capital charge; Residual income: Absolute figure, not a ratio; Residual income: Accepts any project above the charge; Residual income: Harder to compare across sizes; A manager on ROI will reject a project earning above the cost of capital if it is bel…. The balanced scorecard adds customer, process and learning measures, on the argument that financial results are lagging indicators.
Who is the Performance Measurement poster for?
Performance Measurement belongs to the Accounting & Finance section rather than to a school year, because business is not something one grade owns. Anyone learning management accounting can pin it up — a beginner, a student mid-course, or someone revising years later.
When should you use the Performance Measurement poster?
What you measure is what people optimise. Choose measures that cannot be gamed alone. A wall chart earns its place by being glanceable from where the work is happening, so Performance Measurement belongs on the wall where that business work actually happens, within glancing distance, rather than filed away.
What other posters go with Performance Measurement?
Absorption vs Marginal Costing, Activity-Based Costing and Budgeting sit alongside Performance Measurement in the Accounting & Finance section. Printed together they make a wall rather than a single sheet, which is how a reference set actually gets used.Absorption vs Marginal CostingActivity-Based CostingBudgeting
Is the Performance Measurement poster free to download and print?
Yes. Performance Measurement downloads as a free PDF with no account, no email and no watermark, like everything else in the Accounting & Finance section. Print as many copies as you like for a home, a classroom, a library or a tutoring group; reselling the file is the only thing the licence rules out.Read the licence
What size does the Performance Measurement poster print at?
Performance Measurement is a vector PDF laid out for US Letter, and prints on A4 with Fit to page — the same file, no separate download. Because every mark on it is drawn rather than photographed, it stays sharp enlarged to A3, A2 or A1 at a copy shop. Colour carries emphasis only, so a greyscale print of Performance Measurement loses nothing.Printing guide

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