Strategy, balanced scorecard, service company. Compton Associates is an architectural rm that has been in practice only a few years. Because it is a relatively new rm, the market for the rm’s services is very competitive. To compete successfully, Compton must deliver quality services at a low cost. Compton presents the following data for 2016 and 2017. 2016402017501. Number of jobs billed2. Selling price per job3. Architect labor-hours4. Cost per architect labor-hour5. Architect support capacity (number of jobs the firm can do)6. Total cost of software-implementation support7. Software-implementation support-capacity cost per job (row 6 ÷ row 5)$32,00024,000$30,00027,000$3560$3660$180,000$3,000$168,000$2,800Architect labor-hour costs are variable costs. Architect support costs for each year depend on the Architectsupport capacity that Compton chooses to maintain each year (that is, the number of jobs it can do eachyear). Architect support costs do not vary with the actual number of jobs done that year.1. Is Compton Associate's strategy one of product differentiation or cost leadership? Explain briefly.Describe key measures you would include in Compton's balanced scorecard and your reasons fordoing so.Required

Cost leadership strategy: This is a strategy in which a firm distinguishes it by lowering the…

Answered: 2016 40 2017 50 1. Number of jobs…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Strategy, balanced scorecard, service company. Compton Associates is an architectural rm that has been in practice only a few years. Because it is a relatively new rm, the market for the rm’s services is very competitive. To compete successfully, Compton must deliver quality services at a low cost. Compton presents the following data for 2016 and 2017.

2016
40
2017
50
1. Number of jobs billed
2. Selling price per job
3. Architect labor-hours
4. Cost per architect labor-hour
5. Architect support capacity (number of jobs the firm can do)
6. Total cost of software-implementation support
7. Software-implementation support-capacity cost per job (row 6 ÷ row 5)
$32,000
24,000
$30,000
27,000
$35
60
$36
60
$180,000
$3,000
$168,000
$2,800
Architect labor-hour costs are variable costs. Architect support costs for each year depend on the Architect
support capacity that Compton chooses to maintain each year (that is, the number of jobs it can do each
year). Architect support costs do not vary with the actual number of jobs done that year.
1. Is Compton Associate's strategy one of product differentiation or cost leadership? Explain briefly.
Describe key measures you would include in Compton's balanced scorecard and your reasons for
doing so.
Required

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