Fundamentals Of Cost Accounting (6th Edition)
6th Edition
ISBN: 9781259969478
Author: WILLIAM LANEN, Shannon Anderson, Michael Maher
Publisher: McGraw Hill Education
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Textbook Question
Chapter 18, Problem 32E
TechMasters, Inc., has the following mission statement:
To be the leader in innovation and new products for the industrial control instruments market.
TechMasters’s CFO, who has just returned from an executive seminar on performance measurement, tells you that she has developed the following initial balanced scorecard as part of an exercise during class:
Required
Comment on the scorecard and make recommendations about adding or deleting measures to align the scorecard with the company’s strategy as defined by its mission statement.
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Reid Company would like to implement a balanced scorecard performance measurement system. Its senior management team has
assembled the measures shown below for possible inclusion in its scorecard.
Required:
For each measure, indicate by placing an X in the appropriate column whether it would most likely be classified in the learning and
growth, internal business process, customer, or financial category of the company's balanced scorecard.
Learning
&
Growth
Internal
Business
Process
Item
Customer
Financial
Ex. Employee absenteeism rate
X
1. Sales from new customers
2. Customer defection rate
3. Average fuel cost per sales dollar
4. Average number of workplace accidents per employee
5. Delivery cycle time
6. Average training hours per employee
7. Number of job applicants from under-represented groups
Percent of customers that strongly agree with the statement
8.
"Your employees treated me courteously."
9. Return on assets
Percent of customers that strongly agree with the statement
"Your…
The Midwest Consulting Group (MCG) helps companies build balanced scorecards. As part of itsmarketing efforts, MCG conducts an annual balanced scorecard workshop for prospective clients. AsMCG’s newest employee, your boss has asked you to participate in this year’s workshop by explainingto attendees how a company’s strategy determines the measures that are appropriate for its balancedscorecard. Your boss has provided you with the excerpts below from the annual reports of two currentMCG clients. She has asked you to use these excerpts in your portion of the workshop.Excerpt from Applied Pharmaceuticals’ annual report:The keys to our business are consistent and timely new product introductions and manufacturingprocess integrity. The new product introduction side of the equation is a function of research andd evelopment (R&D) yield (e.g., the number of marketable drug compounds created relative to thetotal number of potential compounds pursued). We seek to optimize our R&D yield…
The table below contains performance measures companies might use as internal business process measures in their balanced
scorecards. Each measure is accompanied by a + or - to indicate whether the performance measure should increase or decrease over
time.
Required:
For each measure, place an X in one of the three columns indicating whether the measure would be adopted by a company pursuing
a strategy focused on operational excellence, product leadership, or customer intimacy.
Item
Example Number of patents approved (+)
1. Delivery cycle time (-)
2. Number of new products designed (+)
3. Average contact hours per customer (+)
4. Non-value-added activity costs (-)
5. Percent of suppliers with long-term contracts (+)
6. Number of modular product designs (+)
7. Number of customized products co-designed with customers (+)
8. Defect-free units as a percentage of completed units (+)
9. Number of options available for customers to choose from (+)
Operational Product
Excellence Leadership
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Chapter 18 Solutions
Fundamentals Of Cost Accounting (6th Edition)
Ch. 18 - Why is it important for management accountants to...Ch. 18 - A balanced scorecard is a set of two or more...Ch. 18 - What is a business model?Ch. 18 - What are the advantages of financial measures of...Ch. 18 - Prob. 5RQCh. 18 - Why do effective performance evaluation systems...Ch. 18 - What is benchmarking?Ch. 18 - Prob. 8RQCh. 18 - Prob. 9RQCh. 18 - Prob. 10RQ
Ch. 18 - Prob. 11RQCh. 18 - Prob. 12RQCh. 18 - Prob. 13RQCh. 18 - Prob. 14RQCh. 18 - Prob. 15RQCh. 18 - Prob. 16CADQCh. 18 - Prob. 17CADQCh. 18 - Prob. 18CADQCh. 18 - Prob. 19CADQCh. 18 - Prob. 20CADQCh. 18 - Prob. 21CADQCh. 18 - Prob. 22CADQCh. 18 - Prob. 23CADQCh. 18 - Prob. 24CADQCh. 18 - Strategy and Management Accounting Systems Joes...Ch. 18 - Business Strategy Classification Consider the...Ch. 18 - Prob. 27ECh. 18 - Prob. 28ECh. 18 - Prob. 29ECh. 18 - Prob. 30ECh. 18 - Balanced Scorecards and Strategy Maps Crane...Ch. 18 - TechMasters, Inc., has the following mission...Ch. 18 - Benchmarks Match each of the following specific...Ch. 18 - Benchmarks Match each of the following specific...Ch. 18 - Prob. 35ECh. 18 - Manufacturing Cycle Time and Efficiency Bell ...Ch. 18 - Prob. 37ECh. 18 - Partial Productivity Measures Looking for cost...Ch. 18 - Partial Productivity Measures As the cost...Ch. 18 - Prob. 40ECh. 18 - Prob. 41ECh. 18 - Specifying Nonfinancial Measures Write a memo to...Ch. 18 - Manufacturing Cycle Time and Efficiency A...Ch. 18 - Prob. 44ECh. 18 - Core Assets and Capabilities Consider the...Ch. 18 - Write a memo discussing the advantages of each...Ch. 18 - Balanced Scorecards and Strategy Maps Hill Street...Ch. 18 - Balanced Scorecards and Strategy Maps Monroe...Ch. 18 - Benchmarks Write a report to the CEO of Delta...Ch. 18 - Prob. 50PCh. 18 - Performance Measures, Drawing a Business Model...Ch. 18 - Performance Measures, Drawing a Business Model...Ch. 18 - Functional Measures Write a report to the...Ch. 18 - Prob. 54PCh. 18 - Operational Performance Measures Zuma Company...Ch. 18 - Objective and Subjective Performance Measures A...Ch. 18 - Operational Performance Measures Mid-States Metal...Ch. 18 - Prob. 58PCh. 18 - Prob. 59PCh. 18 - Prob. 60PCh. 18 - Balanced Scorecards and Strategy Maps Following...
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