Theory refresher - responsibility centres
Taught by Louise Setton · AI tutor support included
You’ll learn how to assess and design responsibility centres, including cost centres, profit centres and investment centres, based on the decisions managers can actually control.
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In this lesson
- 0:00 Core Activity Theory Introduction
- 1:07 Assessing Responsibility Centre Control
- 5:30 Interpreting Park Performance Measures
- 10:02 Cost, Profit And Investment Centres
- 13:30 Choosing Relevant Centre KPIs
- 16:08 Comparing ROI, Residual Income And EVA
- 19:01 Applying Centres Across Park Activities
- 23:04 Designing Controllable Bonus Measures
- 24:18 Balanced Measures And Dysfunctional Behaviour
About this lesson
This lesson is highly relevant to the CIMA case study exam and Core Activity, where you may need to recommend suitable KPIs and evaluate performance measurement at park, supermarket or head-office level. You’ll work through controllability, relevant financial and non-financial measures, balanced scorecard principles, and the advantages and limitations of return on investment, residual income and economic value added. You’ll also learn how to identify dysfunctional behaviour and apply responsibility centre theory to the Woodbreak scenario using exam-focused analysis.
Duration: 27m
Transcript
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