EBK COST ACCOUNTING
15th Edition
ISBN: 9780133812763
Author: Rajan
Publisher: VST
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Chapter 23, Problem 23.1Q
To determine
Financial and non-financial performance measures:
Financial measures are those quantitative measure, which has an economical value and can be express in monetary terms. Such as
Non-financial measures are those qualitative measures, which does not have any economical value and cannot be express in monetary terms. Such as customer satisfaction and number of defects, etc.
To state: Examples of financial and non-financial performance measures.
Expert Solution & Answer
Explanation of Solution
The examples of financial and non-financial performance measures from different perspective are as follows:
- 1. Financial perspective: Net income, return on investment, firm’s stock price, residual income, etc.
- 2. Customer perspective: Brand image, customer satisfaction, market share in different geographic locations, number of repeat visits, etc.
- 3. Internal-business process perspective: Customer service, waiting time for customer enquiries, cleanliness of rooms, new services like wireless internet, reduction in waste output, energy and water consumption, etc.
- 4. Learning-and-growth perspective: Education skills, employees’ satisfaction, hours utilized in employee training, employee turnover, company’s achievement of ISO 14001:2015 certification for environment management, etc.
Hence, the examples of financial and non-financial performance measures are discussed as above.
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Students have asked these similar questions
Give examples of financial and nonfinancial performance measures that can be found in each of the four perspectives of the balanced scorecard.
What are the four perspectives of the balanced scorecard? Briefly describe each.
Which of the following is not one of the elements of the balanced scorecard?
a.
strategic plan
b.
performance metrics
c.
strategic objectives
d.
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Chapter 23 Solutions
EBK COST ACCOUNTING
Ch. 23 - Prob. 23.1QCh. 23 - Prob. 23.2QCh. 23 - What factors affecting ROI does the DuPont method...Ch. 23 - RI is not identical to ROI, although both measures...Ch. 23 - Describe EVA.Ch. 23 - Give three definitions of investment used in...Ch. 23 - Distinguish between measuring assets based on...Ch. 23 - Prob. 23.8QCh. 23 - Why is it important to distinguish between the...Ch. 23 - Prob. 23.10Q
Ch. 23 - Managers should be rewarded only on the basis of...Ch. 23 - Explain the role of benchmarking in evaluating...Ch. 23 - Explain the incentive problems that can arise when...Ch. 23 - Prob. 23.14QCh. 23 - Prob. 23.15QCh. 23 - Prob. 23.16ECh. 23 - Prob. 23.17ECh. 23 - Prob. 23.18ECh. 23 - Prob. 23.19ECh. 23 - Prob. 23.20ECh. 23 - Prob. 23.21ECh. 23 - Prob. 23.22ECh. 23 - Prob. 23.23ECh. 23 - Prob. 23.24ECh. 23 - Prob. 23.25ECh. 23 - Prob. 23.26ECh. 23 - Prob. 23.27ECh. 23 - Prob. 23.28PCh. 23 - Prob. 23.29PCh. 23 - Prob. 23.30PCh. 23 - Prob. 23.31PCh. 23 - Prob. 23.32PCh. 23 - Prob. 23.33PCh. 23 - Prob. 23.34PCh. 23 - Prob. 23.35PCh. 23 - Prob. 23.36PCh. 23 - Prob. 23.37P
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- Describe what is meant by the term balanced in the term balanced scorecard method.arrow_forwardWhich of the following is not one of the elements of the balanced scorecard? Oa. strategic objectives Ob. strategic plan Oc. performance perspectives Od. performance metricsarrow_forwardWhat is a balanced scorecard? Ilustrate the dimensions in a balancedscorecard and give an example of key performance indicator for eachdimension.arrow_forward
- which of the following are elements of rhe balanced scorecard? a. performance targets b. strategy maps c. performance forecasts d. strategic initiativesarrow_forward“The financial perspective is the most important in a balanced scorecard.” Evaluate this statement. Provide as much detail/examples as possible.arrow_forwardWhat are four key perspectives in the balanced scorecard?arrow_forward
- Balanced scorecard. Following is a random-order listing of perspectives, strategic objectives, and performance measures for the balanced scorecard. For each perspective, select those strategic objectives from the list that best relate to it. For each strategic objective, select the most appropriate performance measure(s) from the list.arrow_forwardDiscuss what improvements the Balanced Scorecard has contributed over the traditional performance measurement system? Give specific examples in your answer.arrow_forwardExplain the benefits of a balanced scorecard.arrow_forward
- Consider the major components of a balanced scorecard. Which of the following is not one of those components? Learning and Growth Cost Financial Customerarrow_forwardWhat are the characteristics of successful balanced scorecards?arrow_forwardUsing the balanced scorecard (tabular format), translate Rockwater’s strategy into tangible goals and actionsarrow_forward
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