Outsourced cost to perform the process "evaluate and manage financial performance" per $1,000 revenue

This measure calculates outsourced cost per $1,000 revenue to perform the process "evaluate and manage financial performance," which involves developing and evaluating a framework for the internal and external business environment by qualifying the resources and investment costs in relation to profitability expectations for the current and anticipated market, customers, and product portfolios. Outsourced cost refers to the total cost of outsourcing a specific process to a third party, except one-time charges for any type of restructuring or reorganization. This measure is part of a set of Cost Effectiveness measures that help companies understand all cost expenditures related to the process "evaluate and manage financial performance."

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure Id:
101555
Total Sample Size:
1,028 All Companies
Performers:
25th
Median
75th

Compute this Measure

Units for this measure are dollars. Lower values are better.

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Outsourced cost to perform the process "evaluate and manage financial performance" / (Total business entity revenue *.0010)

Key Terms

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Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns.
For government/non-profit organizations, please use your non-pass-through budget. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support.For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income.
Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

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Cross Industry (7.2.1)

  • 9.1.4.1 - Assess customer and product profitability (10782) - Studying product demand and targeted customer preferences. Study customers' demands or preferences after deducting the cost of delivering the final product.
  • 9.1.4.2 - Evaluate new products (10783) - Checking demand about a specific product by a customer segment. Conduct a detailed study--or research a customer behavior or preference for a product--in order to determine its production and profitability in a specific market.
  • 9.1.4.3 - Perform life cycle costing (10784) - Determining the cost of delivering an end product at different stages of production. Study the total life cycle of a product/process to determine how much revenue and production cost will be incurred at every stage in order to make strategic decisions.
  • 9.1.4.4 - Optimize customer and product mix (10785) - Creating the best fit between a product and the end user. Maximize the customer base by providing different products in the market.
  • 9.1.4.5 - Track performance of new-customer and product strategies (10786) - Observing the behavior of a new set of customers for different products. Prepare strategies to improve sales and profits.
  • 9.1.4.6 - Prepare activity-based performance measures (10787) - Evaluating performance based on different sets of activities created by management to measure performance.
  • 9.1.4.7 - Manage continuous cost improvement (10788) - Conducting activities to improve cost distribution regularly. Follow or adopt different ways of reducing costs.