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*** This course is being updated and will be available soon.***

Over the past thirty years, private and public sector organizations have spent billions of dollars implementing a wide range of management tools and practices in efforts to improve their performance. The benefits of this massive investment were not usually fully realized, and many initiatives failed. Surveys by both Bain & Co. and McKinsey estimate that only 25 to 30 percent of all change programs succeed.

Reasons for project failure include ineffective leadership, lack of commitment, and poor implementation. Many firms rush to purchase and implement performance management tools without considering a fundamental question – which problem are we trying to solve?

The purpose of this course is to provide an overview of the key building blocks of a robust performance management process, and includes takeaways that can be used at work.
The course starts with an overview of the organizational levels where performance should be measured, and includes an explanation of how the levels fit into a hierarchy. Transfer pricing techniques are then explored, followed by how to implement internal profitability. Return on investment is reviewed, including a discussion of how residual income can compare the impacts of project of different sizes. The course concludes with an overview of the balanced scorecard, which focuses on the interaction of customer, internal processes, innovation and financial perspectives.

The course content covers performance management topics tested in the Certified Management Accountant (CMA) Part 1 examination.

Topics include:
• Responsibility Centers.
• Transfer Pricing.
• Internal Profitability Analysis.
• Return on Investment and Residual Income.
• The Balanced Scorecard.

Course Key Concept: Balanced scorecard, business unit analysis, contribution margin, controllable fixed costs, cost plus transfer pricing method, dual rate transfer pricing method, full cost transfer pricing method, goal congruence, key performance indicators (KPI’S) , market price transfer pricing method, negotiated price transfer pricing method, non-controllable allocated fixed costs, non-controllable fixed Costs, residual income, return on investment (ROI), transfer pricing, variable cost transfer pricing method.

Learning Objectives

  • Identify and explain different types of responsibility centers.
  • Identify segments that organizations evaluate, including product lines, geographical areas, or other meaningful segments.
  • Recognize transfer pricing and the objectives of transfer pricing.
  • Identify and calculate transfer prices using variable cost, full cost, market price, negotiated price, and dual-rate.
  • Recognize the issues in determining product, customer and business unit profitability.
  • Recognize and calculate return on investment (ROI) and residual income (RI), and compare and contrast the benefits and limitations of ROI and RI as measures of performance.
  • Recognize the relationships between the strategic plan, key performance indicators, and the balanced scorecard.
  • Explore the concept of the balanced scorecard and identify and describe its four perspectives.
Last updated/reviewed: April 10, 2020

4 Reviews (23 ratings)Reviews

4
Anonymous Author
Well presented and thoughtful content, but a little tough to absorb in a 6 hour span. May be better in individual modules.
5
Anonymous Author
Excellent review of standard costs, variance analysis, budgeting, and management reporting. Worthwhile course.
5
Member's Profile
Great materials, liked doing the review questions in smaller increments.
4
Anonymous Author
Very good course materials. A lot was covered in very logical flow.

Prerequisites

Course Complexity: Intermediate
No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  9:35Introduction to Corporate Performance Management
  7:302 Introduction to Variance Analysis
  6:083 Contribution Margin
  13:004 Flexible Budgets
  16:515 Sales Variances
  17:546 Sales Mix and Sales Quantity Variances
  17:357 Direct Material Variances
  10:158 Direct Labor Variances
  20:009 Labor Rate and Efficiency Variances
  12:3510 Labor Mix and Yield Variances
  9:0211 Overhead Absorption
  6:0912 Variable Overhead Variances
  8:0813 Fixed Overhead Variances
  19:1314 Responsibility Centers
  14:5615 Transfer Pricing
  7:3616 Internal Profitability Analysis
  9:0917 Return on Investment and Residual Income
  14:1518 The Balance Score Card
CONTINUOUS PLAY
  3:39:53Corporate Performance Management
SUPPORTING MATERIALS
  PDFSlides: Corporate Performance Management
  PDFCorporate Performance Management Glossary/Index
REVIEW AND TEST
 examFINAL EXAM
  quizREVIEW QUESTIONS: Responsibility Centers
  quizREVIEW QUESTIONS: Transfer Pricing
  quizREVIEW QUESTIONS: The Balanced Scorecard