Personnel cost to perform the process group "perform planning and management accounting" per $1,000 revenue

This measure calculates personnel cost per $1,000 business entity revenue to perform the process group "perform planning and management accounting". Personnel cost refers to employee personnel compensation (salaries and wages, bonuses, overtime and benefits) and fringe benefits (e.g. contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, stock purchase plans), and special allowances such as relocation expenses and car allowances. The Process group "perform planning and management accounting" includes [Comparing revenue targets to reality. Review all transactions and entries passed in final accounts in a year in order to examine profits.]. This Cost Effectiveness measure is intended to help companies understand this cost expenditure related to the process group "Perform planning and management accounting".

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure ID:
105142
Total Sample Size:
2,434 All Companies
Performers:
25th
-
Median
-
75th
-
Key Performance
Indicator:
Yes

Compute this Measure

Units for this measure are dollars.

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(Personnel cost to perform the process "evaluate and manage financial performance" + Personnel cost to perform the process "perform planning/budgeting/forecasting" + Personnel cost to perform the processes "perform cost accounting and control" and "perform cost management") / (Total business entity revenue * 0.001)

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. 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 government/non-profit organizations, please use your non-pass-through budget. 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.

Personnel Cost

Personnel cost is the cost associated with personnel compensation and fringe benefits of employees (i.e., those classified as FTEs which includes both full-time and salaried/hourly employees) contributing to each respective process. Personnel cost should include all of the following costs.

Employee Compensation: Includes salaries and wages, bonuses, overtime and benefits.

Fringe: Includes contributions made towards the employees' government retirement fund, workers compensation, insurance plans, savings plans, pension funds/retirement plans, and stock purchase plans. This should also include special allowances, such as relocation expenses and car allowances.

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.

Median

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.3.1)

  • 9.1.1 - Perform planning/budgeting/forecasting (10738)
    • 9.1.1.1 - Develop and maintain budget policies and procedures (10771)
    • 9.1.1.2 - Prepare periodic budgets and plans (10772)
    • 9.1.1.3 - Operationalize and implement plans to achieve budget (20135)
    • 9.1.1.4 - Prepare periodic financial forecasts (10773)
    • 9.1.1.5 - Perform variance analysis against forecasts and budgets (20136)
  • 9.1.2 - Perform cost accounting and control (10739)
    • 9.1.2.1 - Perform inventory accounting (10774)
    • 9.1.2.2 - Perform profit center accounting (14057)
    • 9.1.2.3 - Perform cost of sales analysis (10775)
    • 9.1.2.4 - Perform product costing (10776)
    • 9.1.2.5 - Perform variance analysis (10777)
    • 9.1.2.6 - Report on profitability (11175)
  • 9.1.3 - Perform cost management (10740)
    • 9.1.3.1 - Determine key cost drivers (10778)
    • 9.1.3.2 - Measure cost drivers (10779)
    • 9.1.3.3 - Determine critical activities (10780)
    • 9.1.3.4 - Manage asset resource deployment and utilization (10781)
  • 9.1.4 - Evaluate and manage financial performance (10741)
    • 9.1.4.1 - Assess customer and product profitability (10782)
    • 9.1.4.2 - Evaluate new products (10783)
    • 9.1.4.3 - Perform life cycle costing (10784)
    • 9.1.4.4 - Optimize customer and product mix (10785)
    • 9.1.4.5 - Track performance of new-customer and product strategies (10786)
    • 9.1.4.6 - Prepare activity-based performance measures (10787)
    • 9.1.4.7 - Manage continuous cost improvement (10788)