Essentials of Control in Management Functions WEEK 15

Controlling

Terminal management function occurring after other functions.

Preventive Control

Control applied before an activity is performed.

Concurrent Control

Monitoring activities while they are being performed.

Feedback Control

Evaluation of an activity after its performance.

External Control Strategy

Motivates employees through external rewards.

Internal Control Strategy

Motivates employees by building commitment.

Standard

Unit of measurement for evaluating results.

Qualitative Control Technique

Control method based on human judgment.

Quantitative Control Technique

Control method based on numerical performance measures.

Budget

Spending plan expressed in numerical terms.

Fixed Budget

Allocates expenditures based on one-time resources.

Flexible Budget

Allows resource variation based on activity.

Gross Profit Margin

Percentage of revenue remaining after cost of goods sold.

Profit Margin

Net income divided by revenue, expressed as a percentage.

Return on Equity

Net income divided by shareholder's equity.

Revenue per Employee

Total revenue divided by number of employees.

Economic Value Added (EVA)

Profit exceeding minimum investor expectations.

EBITDA

Revenue minus expenses excluding interest and taxes.

Pro Forma

Financial statement excluding non-recurring charges.

Net Debt

Total debt minus cash and cash equivalents.

Cash Flow

Net cash generated during a specific period.

Balanced Scorecard

Comprehensive set of performance measures.

Activity-Based Costing (ABC)

Allocates costs based on activities performed.

Computer-Aided Monitoring

System to monitor employee productivity using computers.