HORNGRENS COST ACCOUNTING W/ACCESS
16th Edition
ISBN: 9781323687604
Author: Datar
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 1.21E
Key success factors. Vargas Construction Company provides construction services for major projects. Managers at the company believe that construction is a people-management business, and they list the following as factors critical to their success:
- a. Increase spending on employee development to streamline processes.
- b. Foster cooperative relationships with suppliers that allow for more frequent deliveries as and when products are needed.
- c. Integrate tools and techniques that reduce errors in construction projects.
- d. Train employees in green construction techniques to appeal to companies seeking LEED certification.
- e. Benchmark the company’s gross margin percentages against its major competitors.
Match each of the above factors to the key success factors that are important to managers.
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Key success factors.
Vargas Construction Company provides construction services for major projects. Managers at the company believe that construction is a people-management business, and they list the following as factors critical to their success:
Increase spending on employee development to streamline processes.
Foster cooperative relationships with suppliers that allow for more frequent deliveries as and when products are needed.
Integrate tools and techniques that reduce errors in construction projects.
Train employees in green construction techniques to appeal to companies seeking LEED certification.
Benchmark the company’s gross margin percentages against its major competitors.
Match each of the above factors to the key success factors that are important to managers.
Hurney Corporation manufactures plastic water bottles. It plans to grow by producing high-quality water bottles at a low cost that are delivered in a timely manner. There are a number of other manufacturers who produce similar water bottles. Hurney believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy.
Required:
Is Hurney's strategy one of product differentiation or cost leadership? Explain briefly.
Identify at least one key element that you would expect to see included in the balanced scorecard
a. for the financial perspective.
b. for the customer perspective.
c. for the internal business process perspective.
d. for the learning and growth perspective.
Taylor Construction builds custom homes in Dallas, Texas. Brandon Taylor knows that his future depends on the quality of the homes he builds and the service he provides to customers. Most new-customer sales arise from word-of-mouth advertising by former customers.Identify the balanced scorecard perspective for each measure in the exercise.
Perspective
a.
Number of customer complaints
Internal business processesCustomerLearning & growthFinancial
b.
Employee turnover
Learning & growthFinancialInternal business processesCustomer
c.
Net profit per house constructed
Learning & growthFinancialInternal business processesCustomer
d.
Turnaround time on customer design changes
Learning & growthInternal business processesCustomerFinancial
e.
Hours of training per employee
Learning & growthFinancialInternal business processesCustomer
f.
Average labor cost per house
CustomerLearning &…
Chapter 1 Solutions
HORNGRENS COST ACCOUNTING W/ACCESS
Ch. 1 - How does management accounting differ from...Ch. 1 - Management accounting should not fit the...Ch. 1 - How can a management accountant help formulate...Ch. 1 - Describe the business functions in the value...Ch. 1 - Explain the term supply chain and its importance...Ch. 1 - Management accounting deals only with costs. Do...Ch. 1 - How can management accountants help improve...Ch. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - What three guidelines help management accountants...
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Which of the following is not a primary function...Ch. 1 - Value chain and classification of costs, computer...Ch. 1 - Prob. 1.18ECh. 1 - Value chain and classification of costs, fast-food...Ch. 1 - Key success factors. Dominion Consulting has...Ch. 1 - Key success factors. Vargas Construction Company...Ch. 1 - Planning and control decisions. Gregor Company...Ch. 1 - Planning and control decisions. Gavin Adams is the...Ch. 1 - Prob. 1.24ECh. 1 - Five-step decision-making process, service firm....Ch. 1 - Professional ethics and reporting division...Ch. 1 - Professional ethics and reporting division...Ch. 1 - Planning and control decisions, Internet company....Ch. 1 - Prob. 1.29PCh. 1 - Prob. 1.30PCh. 1 - Management accounting guidelines. For each of the...Ch. 1 - Prob. 1.32PCh. 1 - Prob. 1.33PCh. 1 - Budgeting, ethics, pharmaceutical company. Chris...Ch. 1 - Professional ethics and end-of-year actions. Linda...Ch. 1 - Professional ethics and end-of-year actions....Ch. 1 - Ethical challenges, global company environmental...
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