Performance Management

What is Informal Reporting? (Definition, Explanation, Example, Purpose, and More)

Performance Management

Business reports provide users or readers with useful information. There are various types of reports that businesses may prepare. Usually, these reports have a proper structure and are long in size. However, these are formal reports. Formal reports, as the name suggests, are official or strict documents relating to specific issues. Most businesses operate on …

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What is a Managerial Report? Definition, Purpose, and Key Points to include

Managerial Accounting, Performance Management

Companies and businesses prepare various types of reports. These include both external and internal documents prepared for informed decision-making and other purposes. Of these, the most prevalent external reports include the financial statements. These statements provide meaningful information to both a company’s internal and external stakeholders. However, financial statements have a set format and do …

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What Does ‘Management by Exception’ Mean? How Does It Work?

Managerial Accounting, Performance Management

Management is a very significant function in any business organization. All the departments of a business entity will collapse if there is no systematic managerial approach. Therefore, managers at different scales are very crucial to the success of every department and organizational success as a whole. Different management approaches and management styles are adopted across …

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What is Lean Management Information System? And How Does It Work

Performance Management

Overview The principles of lean management systems urge the efficient use of resources, minimizing waste, and continuous improvements. As the principles suggest, lean management is not a one-time process. It is an iterative process that seeks perfection and continues with improvements. The concept of lean management can be applied to any field, including information systems. …

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The Bottleneck In Production – What Is It and How to Deal With It?

Managerial Accounting, Performance Management

The bottleneck in production is some scarce resource that reduces the production capacity of the whole chain. The bottleneck needs to be efficiently managed to ensure profit maximization and enhanced business efficiency. It’s called a bottleneck because the neck limits the volume of water to be stored in the bottle. The production bottleneck similarly limits …

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Activities Based Management (Example and Implementation)

Performance Management

Definition: Activities Based Management is used to describe the cost management applications of Activities Based Costing. Activities Based Management views the business as linked activities that ultimately add value to the customers. It focuses on managing the business based on the organization’s activities and assumes that such activities consume costs. Therefore by managing activities, costs …

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Use Boston Consulting Group Model in Assessing Strategic Business Unit

Performance Management

Definition: Boston Consulting Group develops a matrix that could help the management of the company to assess the position of the strategic business unit and develop the right strategy to maintain and improve business units or products. In a large business corporation, there are many types of products, division and business units that diversify differently. …

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