Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Chapter 13, Problem 6E
1.
To determine
Describe the manner in which balance scorecard is used to drive organizational change.
2.
To determine
Explain the manner in which performance evaluation is used to assess the effectiveness and viability of an organizations’ strategy.
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A balanced scorecard is an integrated system of performance measures designed to support an organization’s strategy. The various measures in a balanced scorecard should be linked on a plausible cause-and-effect basis from the very lowest level up through the organization’s ultimate objectives. The balanced scorecard is essentially a theory about how specific actions taken by various people in the organization will further the organization’s objectives. The theory should be viewed as tentative and subject to change if the actions do not in fact result in improvements in the organization’s financial and other goals. If the theory changes, then the performance measures on the balanced scorecard should also change. The balanced scorecard is a dynamic measurement system that evolves as an organization learns more about what works and what doesn’t work and refines its strategy accordingly.
Why do the measures used in a balanced scorecard differ from company to company?
Why does the…
Performance evaluation seeks to achieve goal congruence and managerial effort." Discuss what you think is meant by this statement.
Which of the following statements about performance targets is true?
a.Performance targets have nothing to do with performance metrics.
b.Performance targets are the same thing as strategic initiatives.
c.Performance targets are the same thing as performance metrics.
d.Performance targets are levels of improvement that management wants to achieve for performance metrics.
Chapter 13 Solutions
Cornerstones of Cost Management (Cornerstones Series)
Ch. 13 - Describe a strategic-based responsibility...Ch. 13 - What is a Balanced Scorecard?Ch. 13 - What is meant by balanced measures?Ch. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - What are stretch targets? What is their strategic...Ch. 13 - Prob. 7DQCh. 13 - What are the three strategic themes of the...Ch. 13 - Prob. 9DQCh. 13 - Explain what is meant by the long wave and the...
Ch. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - What is a testable strategy?Ch. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Norton Company has the following data for one of...Ch. 13 - Craig, Inc., has provided the following...Ch. 13 - Prob. 3CECh. 13 - The following comment was made by the CEO of a...Ch. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Consider the following list of scorecard measures:...Ch. 13 - Hatch Manufacturing produces multiple machine...Ch. 13 - Computador has a manufacturing plant in Des Moines...Ch. 13 - Refer to Exercise 13.9. Assume that the company...Ch. 13 - The following if-then statements were taken from a...Ch. 13 - Consider the following quality improvement...Ch. 13 - Bannister Company, an electronics firm, buys...Ch. 13 - Prob. 14ECh. 13 - In a balanced scorecard, a key strategic if-then...Ch. 13 - Which of the following objectives would be...Ch. 13 - A manufacturing cell produces 40 units in five...Ch. 13 - Which of the following objectives would likely be...Ch. 13 - Which of the following objectives would likely be...Ch. 13 - Carson Wellington, president of Mallory Plastics,...Ch. 13 - At the end of 20x1, Mejorar Company implemented a...Ch. 13 - Refer to the data in Problem 13.21. 1. Express...Ch. 13 - The following strategic objectives have been...Ch. 13 - Lander Parts, Inc., produces various automobile...Ch. 13 - Auflegger, Inc., manufactures a product that...Ch. 13 - Prob. 26PCh. 13 - At the beginning of the last quarter of 20x1,...
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- Components of the organization that are demotivating for purposes of performance management are known as ______. A. business goals B. strategic plans C. uncontrollable factors D. incentivesarrow_forwardShould an organization focus on controllable or uncontrollable factors to effectively implement a successful performance measurement system? Explain your answer.arrow_forwardExplain how performance measurement can help improve an organization's business sustainability efforts.arrow_forward
- Goal congruence in well-designed performance measurement systems best explains a congruence between ________. A. employees and the company B. strategic plans and the future C. decisions and outcomes D. feedback and measurementarrow_forwardConsider 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_forwardIn an effort to optimize decentralization, work towards accomplishing its mission, and achieve goal-congruence, an organization will strive to utilize a lot of planning in the design and implementation of their management system. Which of the following represents one of the four pillars of management control systems? O Performance measurement Production O Unit pricing O Irresponsibility centersarrow_forward
- Can you breifly explain the role of performance management techniques in improving organizational performance. Expalin how i can develop arguments and evaluation on this topic.arrow_forwardhow to use brenchmarking to improve an organizations performance?arrow_forwardHow can a balanced scorecard be used to ensure the organization's strategic goals are met? Also what are the pros and cons?arrow_forward
- Strategic management accounting provides information to protect an organisation's strategic position and determine strategies to improve its future competitiveness. To have strategic value, management accounting information (MAI) must help accomplish key strategic objectives related to quality, cost, and time. At the same time, MAI must have the technical, behavioural, and cultural attributes necessary to help achieve the strategic goals. Discuss the statement with suitable examples. Your discussion should include the inter-relationship between the strategic purpose and the desired attributes of management accounting information. [Word limit: 225 words. Note the word count at the end of your answer]arrow_forwardExplain the Role of Perfomance Management Techniques in improving Organizational Performance.arrow_forwardgood performance measurement system will align the goals of management with ________.arrow_forward
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