12-26 Strategy, balanced scorecard, service company. Southland Corporation is a small information- systems consulting firm that specializes in helping companies implement standard sales-management software. The market for Southland's services is very competitive. To compete successfully, Southland must deliver quality service at a low cost. Southland presents the following data for 2012 and 2013. 1. Number of jobs billed 2. Selling price per job 3. Software-implementation labor-hours 4. Cost per software-implementation labor-hour 5. Software-implementation support capacity (number of jobs it can do) 6. Total cost of software-implementation support 7. Software-implementation support-capacity cost per job (row 6 + row 5) 2012 40 $45,000 25,000 $58 70 $224,000 $3,200 2013 55 $42,000 28,000 $60 70 $252,000 $3,600 Software-implementation labor-hour costs are variable costs. Software-implementation support costs for each year depend on the software-implementation support capacity Southland chooses to maintain each year (that is, the number of jobs it can do each year). Software-implementation support costs do not vary with the actual number of jobs done that year. 1. Is Southland Corporation's strategy one of product differentiation or cost leadership? Explain briefly. 2. Describe key measures you would include in Southland's balanced scorecard and your reasons for doing so.
12-26 Strategy, balanced scorecard, service company. Southland Corporation is a small information- systems consulting firm that specializes in helping companies implement standard sales-management software. The market for Southland's services is very competitive. To compete successfully, Southland must deliver quality service at a low cost. Southland presents the following data for 2012 and 2013. 1. Number of jobs billed 2. Selling price per job 3. Software-implementation labor-hours 4. Cost per software-implementation labor-hour 5. Software-implementation support capacity (number of jobs it can do) 6. Total cost of software-implementation support 7. Software-implementation support-capacity cost per job (row 6 + row 5) 2012 40 $45,000 25,000 $58 70 $224,000 $3,200 2013 55 $42,000 28,000 $60 70 $252,000 $3,600 Software-implementation labor-hour costs are variable costs. Software-implementation support costs for each year depend on the software-implementation support capacity Southland chooses to maintain each year (that is, the number of jobs it can do each year). Software-implementation support costs do not vary with the actual number of jobs done that year. 1. Is Southland Corporation's strategy one of product differentiation or cost leadership? Explain briefly. 2. Describe key measures you would include in Southland's balanced scorecard and your reasons for doing so.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:12-26 Strategy, balanced scorecard, service company. Southland Corporation is a small information-
systems consulting firm that specializes in helping companies implement standard sales-management
software. The market for Southland's services is very competitive. To compete successfully, Southland must
deliver quality service at a low cost. Southland presents the following data for 2012 and 2013.
1. Number of jobs billed
2. Selling price per job
3. Software-implementation labor-hours
4. Cost per software-implementation
labor-hour
5. Software-implementation support capacity (number of jobs it can do)
6. Total cost of software-implementation support
7. Software-implementation support-capacity cost per job (row 6 + row 5)
2012
40
$45,000
25,000
$58
70
$224,000
$3,200
2013
55
$42,000
28,000
$60
70
$252,000
$3,600
Software-implementation labor-hour costs are variable costs. Software-implementation support costs for
each year depend on the software-implementation support capacity Southland chooses to maintain each
year (that is, the number of jobs it can do each year). Software-implementation support costs do not vary
with the actual number of jobs done that year.
1. Is Southland Corporation's strategy one of product differentiation or cost leadership? Explain briefly.
2. Describe key measures you would include in Southland's balanced scorecard and your reasons for doing so.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education