Fundamentals of Cost Accounting
6th Edition
ISBN: 9781260708783
Author: LANEN, William
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 18, Problem 52P
Performance Measures, Drawing a Business Model
Local Bank discloses to you that it uses a balanced scorecard with the following performance measures for its branch managers:
- Compliance with procedures
- Customer satisfaction
- Customer wait time
- Employee competencies
- Market share
- Profit
Required
- a. Link the measures to the perspectives of the balanced scorecard by filling in the following table
- b. Present a business model as in Exhibit 18.1 that would lead the company to choose this set of measures.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Indicate whether the items below are used as key performance indicators for the areas
Average time from when clients enter and leave the bank *(A) Financial(B) Customer(C) Internal Process(D) Learning and Growth performance.
The balanced scorecard for a service company
American Express Company is a major financial services company noted for its American Express card. Some of the performance measures used by the company on its
balanced scorecard are listed below.
a. For each measure, identify whether the measure best fits the learning and growth, internal processes, customer, or financial performance perspective of the balanced
scorecard.
Performance Measure
Average card member spending
Number of Internet features
Cards in force
Performance Perspective
Number of merchant signings
Earnings growth
Number of new card launches
Hours of credit consultant training
Return on equity
Investment in information technology
Revenue growth
Number of card choices
b. From the list of measures, select the option that would be considered lagging indicators relative to the rest of the measures listed.
Lagging indicators
Lagging indicators
Lagging indicators
What Financial Perspective Objectives and Initiatives should I develop when the 3 preceeding perspectives are as follows:CustomerCustomer Satisfaction: Achieve high customer satisfaction scores by ensuring a consistent pattern of positive customer experiences at all customer touchpoints whether person to person, through voice communication, text messages, or over the internet.Internal Business ProcessDraw customers to our channels and streamline the fulfillment process to improve service speed and accuracy.Learning and GrowthDevelop a competent and motivated workforce to drive a customer-centric culture
Chapter 18 Solutions
Fundamentals of Cost Accounting
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...
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.Similar questions
- Subject: accountingarrow_forwardThe balanced scorecard for a service company American Express Company is a major financial services company noted for its American Express® card. Some of the performance measures used by the company on its balanced scorecard are listed below. For each measure, identify whether the measure best fits the learning and growth, internal processes, customer, or financial performance perspective of the balanced scorecard. Performance Metric Performance Perspective Average card member spending Number of Internet features Cards in force Number of merchant signings Earnings growth Number of new card launches Hours of credit consultant training Return on equity Investment in information technology Revenue growth Number of card choicesarrow_forwardWhich of the following is a key performance indicator of the internal business perspective in a balanced scorecard? A. return on investment B. hours of employee training C. number of warranty claims received D. percentage of market sharearrow_forward
- 1. Customer profitability analysis allows managers to do which of the following? a. Identify the closest competitor. b. Sell to higher end customers. c. Manage each customer's costs-to-serve. d. Focus solely on service calls. 2. What is the focus of operational control? a. Long-term operating performance. b. The profitability of the company. c. The activities of company executives. d. Short-term operating performance. 3. The objectives of management control of the manager include: a. Cost, quality, and functionality. b. Management by objectives. c. Management by exception. d. Motivation, incentive, and fairness. 4. Cost allocation of costs for shared services in an organization is intended to remind managers of: a. The cost and value of using shared resources. b. How much capacity a firm has. c. Manufacturing cycle time. d. Variable costing income calculations. 5. The method for directly measuring the value of a firm's equity is: a. Market value. b. Sales multiple. c. Earnings-based…arrow_forwardBalanced scorecards use both financial and nonfinancial measures to evaluate employees. The four categories of a balanced scorecard are financial perspective, internal business perspective, customer perspective, and learning and growth perspective. Are the above statements True / False? If the above statements are true then what are: the financial perspective the internal business perspective the customer perspective the learning and growth perspectivearrow_forwardReid 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…arrow_forward
- Give true solution for general accounting questionarrow_forwardDescribing 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 financial perspective, customer perspective, internal business perspective, or learning and growth perspective. a. Number of employee suggestions implemented b. Revenue growth c. Number of on-time deliveries d. Percentage of sales force with access to real-time inventory levels e. Customer satisfaction ratings f. Number of defects found during manufacturing g. Number of warranty claims h. Return on investment i. Variable cost per unit j. Percentage of market share k. Number of hours of employee training l. Number of new products developed m. Yield rate (number of units produced per hour) n. Average repair time o. Employee satisfaction p. Number of repeat customersarrow_forwardPer given item (A to P), Identify if it is under Financial Perspective, Customer Perspective, Learning Perspective or Internal Perspectivearrow_forward
- Financial performance measures are essential tools used by managers to evaluate the financialhealth of their organization. They provide an overview of the company's financialperformance, help identify areas of improvement, and support decision making.CarniTrin is a manufacturer of Carnival costumes in a highly competitive market. Thecompany's management team is seeking guidance on the use of financial performancemeasures to identify the key drivers of the company's financial performance and develop astrategy to improve it.The following data relate to the company for the year 2019: In its clothing division, the company has $4,000,000 invested in assets. After-taxoperating income from sales of clothing in 2019 is $700,000. Income for the clothingdivision has grown steadily over the last few years. The cosmetics division has $12,000,000 invested in assets and an after-tax operatingincome in 2019 of $1,700,000. The weighted-average cost of capital for CarniTrin is 10% and the 2018’s…arrow_forwardPer given item (A to P), Identify if it is under Financial Perspective, Customer Perspective, Learning Perspective or Internal Perspective The following items are connected to one of the four perspectives on the balanced scorecard: A. Revenue B. Inventory C. Employee satisfaction D. Customer satisfaction E. Market share F. Cycle time G. Orders M. Net Income H. Asset value N. Resource Allocation . Customer retention J. Employee education K. Quality contral L Brand strength O. Employee turnover P. Cash Flowarrow_forwardProviding information about the performance and financial position of companies so that users can make economic decisions best describes the role of: Select one: O a. Financial reporting. O b. Financial statement analysis. O c. Auditing.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Elements of cost | Direct and Indirect: Material, Labor, & Expenses; Author: Educationleaves;https://www.youtube.com/watch?v=UFBaj6AHjHQ;License: Standard youtube license