Cost Accounting: A Managerial Emphasis, 15th Edition
15th Edition
ISBN: 9780133803815
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 12, Problem 12.34P
Balanced scorecard. Following is a random-order listing of perspectives, strategic objectives, and performance measures for the balanced scorecard.
- Perspectives
- Internal business process
- Customer
- Learning and growth
- Financial
- Strategic Objectives
- Acquire new customers
- Increase shareholder value
- Retain customers
- Improve manufacturing quality
- Develop profitable customers
- Increase proprietary products
- Increase information-system capabilities
- Enhance employee skills
- On-time delivery by suppliers
- Increase profit generated by each salesperson
- Introduce new products
- Minimize invoice-error rate
- Performance Measures
- Percentage of defective-product units
- Return on assets
- Number of patents
- Employee turnover rate
- Net income
- Customer profitability
- Percentage of processes with real-time feedback
- Return on sales
- Average job-related training-hours per employee
- Return on equity
- Percentage of on-time deliveries by suppliers
- Product cost per unit
- Profit per salesperson
- Percentage of error-free invoices
- Customer cost per unit
- Earnings per share
- Number of new customers
- Percentage of customers retained
For each perspective, select those strategic objectives from the list that best relate to it. For each strategic objective, select the most appropriate performance measure(s) from the list.
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Students have asked these similar questions
Balanced scorecard. Following is a random-order listing of perspectives, strategic objectives, and performance measures for the balanced scorecard.
For each perspective, select those strategic objectives from the list that best relate to it. For each strategic
objective, select the most appropriate performance measure(s) from the list.
Balanced scorecard. Following is a random-order listing of perspectives, strategic objectives,
and performance measures for the balanced scorecard.
Perspectives
Internal business process
Performance Measures
Percentage of defective-product units
Customer
Return on assets
Learning and growth
Number of patents
Employee turnover rate
Net income
Financial
Strategic Objectives
Acquire new customers
Customer profitability
Percentage of processes with real-time feedback
Increase shareholder value
Return on sales
Retain customers
Improve manufacturing quality
Develop profitable customers
Average job-related training-hours per employee
Return on equity
Percentage of on-time deliveries by suppliers
Product cost per unit
Increase proprietary products
Increase information-system capabilities
Enhance employee skills
Profit per salesperson
Percentage of error-free invoices
On-time delivery by suppliers
Increase profit generated by each salesperson
Introduce new products
Customer cost per unit…
Describing the balanced scorecard and identifying key performance indicators for each perspective
Consider the following key performance indicators, and classify each according to the balanced scorecard perspective it addresses. Choose from a financial perspective, customer perspective, internal business perspective, or learning and growth perspective.
Number of employee suggestions implemented
Revenue growth
Number of on-time deliveries
Percentage of salesforce with access to real-time inventory levels
Customer satisfaction ratings
Number of defects found during the manufacturing
Number of warranty claims
Return on investment
Variable cost per unit
Percentage of market share
Number of hours of employee training
Number of new products developed
Yield rate (number of units produced per hour)
Average repair time
Employee satisfaction
Number of repeat customers
Chapter 12 Solutions
Cost Accounting: A Managerial Emphasis, 15th Edition
Ch. 12 - Define strategy.Ch. 12 - Describe the five key forces to consider when...Ch. 12 - Prob. 12.3QCh. 12 - What is a customer preference map, and why is it...Ch. 12 - Prob. 12.5QCh. 12 - What are four key perspectives in the balanced...Ch. 12 - What are the five types of conditions to consider...Ch. 12 - Describe three features of a good balanced...Ch. 12 - What are three important pitfalls to avoid when...Ch. 12 - Describe three key components in doing a strategic...
Ch. 12 - Why might an analyst incorporate the...Ch. 12 - How does an engineered cost differ from a...Ch. 12 - What is downsizing?Ch. 12 - What is a partial-productivity measure?Ch. 12 - Prob. 12.15QCh. 12 - Prob. 12.16ECh. 12 - Prob. 12.17ECh. 12 - Prob. 12.18ECh. 12 - Prob. 12.19ECh. 12 - Prob. 12.20ECh. 12 - Prob. 12.21ECh. 12 - Prob. 12.22ECh. 12 - Prob. 12.23ECh. 12 - Prob. 12.24ECh. 12 - Prob. 12.25ECh. 12 - Prob. 12.26ECh. 12 - Prob. 12.27ECh. 12 - Prob. 12.28ECh. 12 - Prob. 12.29ECh. 12 - Balanced scorecard and strategy. Scott Company...Ch. 12 - Prob. 12.31PCh. 12 - Prob. 12.32PCh. 12 - Prob. 12.33PCh. 12 - Balanced scorecard. Following is a random-order...Ch. 12 - Prob. 12.35PCh. 12 - Prob. 12.36PCh. 12 - Prob. 12.37PCh. 12 - Prob. 12.38PCh. 12 - Prob. 12.39PCh. 12 - Prob. 12.40PCh. 12 - Prob. 12.41P
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- Classify each of the following performance measures into the balanced scorecard perspective to which it relates: financial perspective, internal operations perspective, learning and growth perspective, or customer perspective. A. Number of improved products B. Time from packaging to delivery or display C. Production costs D. Number of customer suggestions E. Sales mix revenues F. Number of repeat customersarrow_forwardFrom the following list of performance measures, label each one as Financial, Customer, Internal Business Processes, or Learning and Growth: Percentage of on-time deliveries Employee turnover ratio Revenue from new products Number of new customers Percentage of compensation based on team performance Percentage of products returned Operating income Time taken to replace defective productsarrow_forwardClassify each of the following performance measures into the balanced scorecard perspective to which it relates: financial perspective, internal operations perspective, learning and growth perspective, or customer perspective. A. Employee satisfaction surveys B. Units of waste per production process, uniformity of products and inventory control C. Number of energy-efficient bulbs replaced D. Management training course certificates awarded E. Divisional profit F. Number of customer referralsarrow_forward
- Which of the following objectives would likely be associated with the learning and growth perspective of the balanced scorecard? a. Increasing post-sales service efficiency b. Increasing information system capabilities c. Decreasing product development cycle time d. Improving product image and reputationarrow_forwardBluetiful Inc. has the following strategic objectives on its balanced scorecard but is unsure how to measure them: Increase profits Obtain new customers Improve production efficiency Recruit top candidates State which performance perspective each strategic objective should fall under, and suggest at least two possible performance metrics for each strategic objective listed.arrow_forwardInstructions 1. Based on the balanced scorecard and the following descriptions of the predicted relationships between strategic objectives, draw the scorecards strategy map. a. Training employees effectively and reducing employee turnover can both be expected to improve returns processing and reduce shipping errors. b. Both improving returns processing and reducing shipping errors can be expected to delight the customer. c. Delighting the customer can be expected to increase market share. 2. Based on the balanced scorecard and the following descriptions of the predicted relationships between performance metrics, draw the scorecards measure map. a. Median training hours per employee and average employee tenure will both influence hours from returned to refunded and number of erroneous shipments. b. Both hours from returned to refunded and number of erroneous shipments will affect percentage of customers who shop again and online customer satisfaction rating. c. Both percentage of customers who shop again and online customer satisfaction rating will influence the companys market share. 3. Label each element of the balanced scorecard.arrow_forward
- Which of the following objectives would likely be associated with the customer perspective of the balanced scorecard? a. Increasing post-sales service efficiency b. Decreasing product development cycle time c. Reducing distribution channel cost d. Increasing delivery reliabilityarrow_forwardThe balanced scorecard provides an action plan for achieving competitive success by focusing management attention on critical success factors. Which of the following is not one of the competitive success factors commonly found on the balanced scorecard? a. Competitor business strategies b. Financial performance measures c. Internal business processes d. Learning and growtharrow_forwardExplain how performance measurement can help improve an organization's business sustainability efforts.arrow_forward
- Consider the following quality improvement strategy as expressed by a series of if-then statements: If real-time feedback information capabilities improve, then post-sales service time will improve. If post-sales service time improves, then post-sales service quality will increase. If post-sales service quality increases, then customer satisfaction will increase. If customer satisfaction increases, then market share will increase. If market share increases, then sales will increase. If sales increase, then profits will increase. Required: 1. Prepare a strategy map that shows the cause-and-effect relationships of the quality improvement strategy (see Exhibit 13.10 for an illustrative example). 2. Explain how the quality improvement strategy can be tested.arrow_forwardA Box Scorecard was prepared for a value stream: Required: 1. How many nonfinancial measures are used to evaluate performance? Why are nonfinancial measures used? 2. Classify the operational measures as time-based, quality-based, or efficiency-based. Discuss the significance of each category for lean manufacturing. 3. What is the role of the Planned Future State column? 4. Discuss the capacity category and explain the meaning of each measure and its significance. 5. Discuss the relationship between the financial measures and the measures in the operational and capacity categories.arrow_forward72 Inc. has developed a balanced scorecard with the following performance metrics: Total sales Employee turnover Market share Number of shipping errors Median training hours per employee Number of new customers Relative to the metric customer satisfaction ratings, which of these performance metrics are leading indicators and which are lagging indicators?arrow_forward
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