Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 14, Problem 2BE
Bluetiful 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.
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Performance perspectives and metrics
Bluetiful Inc. has the following strategic objectives on its balanced scorecard but is unsure how to measure them:
State which performance perspective each strategic objective should fall under, and suggest at least two possible performance metrics for each strategic objective listed.
Strategic Objective
Performance Perspective
Possible Performance Metrics
Increase profits
Obtain new customers
Improve production efficiency
Recruit top candidates
Construct a balanced scorecard that would support MPC’s new manufacturing strategy. Use arrows toshow the causal links between the performance measures and show whether the performance measureshould increase or decrease over time. Feel free to create measures that may not be specificallymentioned in the chapter, but nonetheless make sense given the strategic goals of the company.
Which of the following describes the best way to build/create a
balanced scorecard?
O a. Step 1. Create a strategy map that captures the company's strategy and
shows the cause-and-effect relationships (links) between different parts of the
strategy. Step 2. Define performance measures in each of the 4 perspectie
or categories of the Balanced Scorecard based on the strategy map
O a. Step 1. Examine best practices for "Key Performance Indicators' used by
Fortune 500 companies. Step 2. Use all of the measures which are used in the
"best practice" examples.
O a Step 1. List all possible performance measures that the compaury could cse
Step 2. Put each measure into ane of the 4 perspectives" or categories of the
Balanced Scorecard.
Chapter 14 Solutions
Managerial Accounting
Ch. 14 - How does a strategic performance measurement...Ch. 14 - What is the difference between a leading indicator...Ch. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - What do strategy maps show, and how do they add...Ch. 14 - Prob. 6DQCh. 14 - Prob. 7DQCh. 14 - Prob. 8DQCh. 14 - How is sustainability distinguishable from...Ch. 14 - How can the balanced scorecard be used to address...
Ch. 14 - 72 Inc. has developed a balanced scorecard with...Ch. 14 - Bluetiful Inc. has the following strategic...Ch. 14 - Moses Moonrocks Inc. has developed a balanced...Ch. 14 - Prob. 4BECh. 14 - Lonnies Shipping Co. is considering switching to...Ch. 14 - Henrys Cafe is a local restaurant that is growing...Ch. 14 - American Express Company is a major financial...Ch. 14 - Eat-n-Run Inc. owns and operates 10 food trucks...Ch. 14 - Prob. 4ECh. 14 - Prob. 5ECh. 14 - The following is the balanced scorecard for Smith...Ch. 14 - Grand Grocery developed a balanced scored with six...Ch. 14 - Coulson and Company is a large retail business...Ch. 14 - Rizzo Goal Inc. produces and sells hockey...Ch. 14 - Silver Lining Inc. has a balanced scorecard with a...Ch. 14 - Two departments within Cougar Gear Inc. are...Ch. 14 - Sunny Nights Inc. is completely powered by the...Ch. 14 - Instructions 1. Label each element of the balanced...Ch. 14 - Strategic initiatives and CSR Get Hitched Inc. is...Ch. 14 - Prob. 3PACh. 14 - Instructions 1. Based on the balanced scorecard...Ch. 14 - Strategic initiatives and CSR Blue Skies Inc. is a...Ch. 14 - Eye Swear Inc. has a balanced scorecard that...Ch. 14 - Den-Tex Company is evaluating a proposal to...Ch. 14 - Analyze CSR initiatives at Boxwood Company Boxwood...Ch. 14 - Analyze CSR initiatives at Green Manufacturing...Ch. 14 - Prob. 1TIFCh. 14 - Blake McKenzie Tax Services is a company serving...Ch. 14 - Young Manufacturing Company is a startup...Ch. 14 - The fundamental concept behind strategic...Ch. 14 - Which of the following statements regarding the...Ch. 14 - The balanced scorecard provides an action plan for...Ch. 14 - Which of the following statements best describes...Ch. 14 - A sign of the successful implementation of a...
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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_forwardWhich 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 following 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_forward
- A 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_forwardClassify the performance measures below into the most likely balanced scorecard perspective itrelates to. Label your answers using C (customer), P (internal process), I (innovation and growth), or F(financial). Number of new products introducedarrow_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. Number of improved products Time from packaging to delivery or display Production costs Number of customer suggestions Sales mix revenues Number of repeat customersarrow_forward
- Required: a) For each of the strategic priorities, suggest three performance measures. b) If the company is successful in achieving challenging targets for these performance measures, will it also necessarily achieve high profitability? Explain your answer.arrow_forwardCanarsie Corporation uses a balanced scorecard to evaluate its digital camera manufacturing operation. Which of the following statements with respect to balanced scorecards is/are correct? A balanced scorecard reports management information regarding organizational performance in achieving goals classified by critical success factors to demonstrate that no single dimension of organizational performance can be relied upon to evaluate success. Performance measures used in a balanced scorecard tend to be divided into financial, customer, internal business process, and learning and growth. In a balanced scorecard, internal business processes are what the company does in its attempts to satisfy customers. I and II only are correct. II and III only are correct. III only is correct. I, II, and III are correctarrow_forwardWhich of the following statements is true? I. A balanced scorecard consists of a report showing a performance measure such as ROI or residual income for all of the divisions in a company that generate profits. II. If a strategy is not working, it should become evident on the balanced scorecard when some of the predicted effects don't occur. III. In essence, a balanced scorecard lays out a theory of how the company can take concrete actions to attain its desired outcomes. The strategy should seem plausible, but it should be regarded as only a theory. Multiple Choice Both statements I and III are true. All of the statements are true. None of the statements are true. Both statements II and III are true.arrow_forward
- USA Airlines uses the following performance measures. Classify the performance measures belowinto the most likely balanced scorecard perspective it relates to. Label your answers using C (customer),P (internal process), I (innovation and growth), or F (financial). Market valuearrow_forwardA. What are the four performance perspectives used in the balanced scorecard? B. For each performance perspective above, list at least two strategic objectives. 2. A balanced scorecard has the following performance metrics: Sales increase by region Sales order pipeline Market share Salesperson training hours Number of shipping errors Number of new customers New product development expenditures Relative to the metric “increase sales”, which of these performance metrics are leading and which are lagging indicators?arrow_forwardClassify the performance measures below into the most likely balanced scorecard perspective itrelates to. Label your answers using C (customer), P (internal process), I (innovation and growth), or F(financial). Customer satisfaction indexarrow_forward
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