MANAGERIAL ACCOUNTING ACCESS CARD
17th Edition
ISBN: 9781266165276
Author: Garrison
Publisher: MCG
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Chapter 12, Problem 1Q
To determine
Balanced Scorecard: A balanced scorecard is a report card used to assess a firm's overall performance as well as individual value-adding activities. A balanced scorecard provides a comprehensive analysis of both financial and non-financial factors. This aids in gaining a complete understanding of the organization's progress and how far it has progressed toward its overall objectives.
To discuss:
Four categories of measure in a balanced scorecard.
Expert Solution & Answer

Answer to Problem 1Q
A balanced scorecard has four perspectives which are as follows:
- Financial perspective: The financial perspective aims at increasing revenue, increasing profitability, decreasing operating costs, and decreasing the liability of the company.
- Customer perspective: The customer perspective evaluates the organization from the perspective of those individuals who purchase the products or services of the organization.
- Internal process perspective: The internal process perspective evaluates the internal working cycles of the company which leads to its success or progress.
- Learning and growth perspective: The learning and growth perspective evaluates the organization based on employee development and employee retention.
Explanation of Solution
The four perspectives of the balanced scorecard are as follows:
- Financial perspectives: Under financial perspectives, financial performance measures are taken into consideration. Financial performance measures such as return on assets, credit rating, net income, share prices,
cash flow , and others are used for analyzing and comparing companies. In deciding whether to invest money in the company, investors depend heavily on financial performance measures. - Customer perspective: It measures the level of customer satisfaction, customer loyalty, customer retention, and the market share held by the organization through cost, time, quality, and services. This perspective analyzes the organization to rivals regarding price, quality, product innovation, customer service, and other dimensions.
- Internal process perspective: This comprises measures such as cost and quality related to business processes such as process bottlenecks, process automation, and the number of activities per person. To ensure that the company is operating effectively and efficiently, all basic aspects of the value chain such as product development, production, delivery, and after-sale service are evaluated.
- Learning and growth perspective: The learning and growth perspective focuses on the capabilities of individuals. The manager of the company would be liable for developing the employee's capabilities. This would incorporate the assessment of employee satisfaction, employee skills, training programs, and information dissemination.
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Chapter 19 Homework
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Exercise 19-20 (Algo) Contribution margin ratio by sales territory LO A1
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Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year
follows. The company sold 550 bikes in each territory.
Per unit
Sales price
Variable cost of goods sold
West Coast
$ 1,500
East Coast
$ 1,440
830
70
830
Variable selling and administrative expenses
160
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a. Compute contribution margin (in dollars) for each sales territory.
b. Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio?
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Required A Required B
Compute contribution margin (in dollars) for each sales territory.
Sales
Variable expenses
Variable cost of goods sold
Variable selling and administrative expenses
Contribution margin
West Coast
East Coast…
Chapter 19 Homework
15
0.87
points
eBook
Saved
Exercise 19-20 (Algo) Contribution margin ratio by sales territory LO A1
Help Save & Exit
Submit
Check my work
Big Bikes manufactures and sells mountain bikes in two sales territories, West Coast and East Coast. Information for the year
follows. The company sold 550 bikes in each territory.
Per unit
Sales price
Variable cost of goods sold
West Coast
$ 1,500
East Coast
$ 1,440
830
70
830
Variable selling and administrative expenses
160
Ask
a. Compute contribution margin (in dollars) for each sales territory.
b. Compute contribution margin ratio for each sales territory. Which sales territory has the better contribution margin ratio?
Print
Complete this question by entering your answers in the tabs below.
References
Required A Required B
Compute contribution margin (in dollars) for each sales territory.
Sales
Variable expenses
Variable cost of goods sold
Variable selling and administrative expenses
Contribution margin
West Coast
East Coast…
Determine the gross margin of this financial accounting question
Chapter 12 Solutions
MANAGERIAL ACCOUNTING ACCESS CARD
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - Prob. 1AECh. 12 - Prob. 2AECh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21C
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