Performance measures
Free IMA CMA Part 1 (Financial Planning, Performance, and Analytics) lesson in Performance Management. 17 min read, ~2,513 words.
ROI = Operating Income / Invested Capital; RI = Operating Income − (Required Rate × Invested Capital); RI accepts any project above the hurdle, ROI rejects below-average winners. Controllable margin isolates costs the manager can influence; drop a product or customer only when controllable margin is negative AND no strategic...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 1C3
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