Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 28, Problem 3TIF
Young Manufacturing Company is a startup manufacturing firm looking to build and develop its balanced scorecard. Gunner Young, the company owner, has told you the following:
Our company was built on the shoulders of our hard-working, diligent employees. I believe that the heart and soul of any company is its employees. If our company is going to succeed, we need to continue to hire and train hard-working, passionate, and ethical employees. I also believe in being efficient. I’ve noticed that the companies that always find ways to cut production costs and produce their goods faster are the ones that win in this industry.
Gunner has also told you that he is mainly focused on maintaining the customers he has rather than seeking out a lot of new ones. At the end of the day, he admits that his company’s ultimate objective is increasing the bottom line.
- a. Working together in a team, list one strategic objective for each performance perspective of the balanced scorecard based on the information Gunner provided.
- b. For each strategic objective you came up with in part (a), list at least one performance metric.
- c.
Describe the relationships that would be illustrated by a strategy map of Young’s balanced scorecard. - d.
Describe the relationships that would be illustrated by a measure map of Young’s balanced scorecard.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The following are some selected quotes from senior executives:
CEO, Worthington Industries fa high technology steel company): "We try to find the best technology, stay ahead of the competition, and serve the customer.... We’ll make any investment that will pay back quickly... but if it is something that we really see as a must down the road, payback is not going to be that important."
Chairman of Amgen Inc. (a biotech company): “You cannot really run the numbers, do net present value calculations, because the uncertainties are really gigantic. ... You decide on a project you want to run, and then you run the numbers [as a reality check on your assumptions]. Success in a business like this is much more dependent on tracking rather than on predicting, much more dependent on seeing results over time, tracking and adjusting and readjusting, much more dynamic, much more flexible."
Chief Financial Officer of Merck & Co., Inc. (a pharmaceutical company):"... at the individual product…
Indra Nooyi, the former CEO of PepsiCo describes how she led an effort to the company being a "better corporate citizen." She advises other companies
who wish to adopt a "Performance with Purpose" approach to consider all of the following except:
Ensure the company's board of directors support the intiative.
O Hire a Chief Sustainability Officer to oversee all aspects of the initiative.
O Adapt the strategy to accommodate the needs of local markets.
O Form partnerships and coalitions with NGOS and other companies.
Review this sentence: "We recognize that we operate a company in a diverse community, and our management and staff should reflect this."
This section from the diversity strategy is an example of the
paradigm, the focus of which is
After running some analyses, the owner of Loose Leaf Delight is happy to report that her business has benefitted greatly from the implementation of
this diversity strategy. For one, the strategies that fall under the learning and effectiveness paradigm have primarily benefited the company by
providing an increase in
Chapter 28 Solutions
Financial And Managerial Accounting
Ch. 28 - How does a strategic performance measurement...Ch. 28 - What is the difference between a leading indicator...Ch. 28 - Prob. 3DQCh. 28 - How are strategic objectives and strategic...Ch. 28 - What do strategy maps show, and how do they add...Ch. 28 - Prob. 6DQCh. 28 - Prob. 7DQCh. 28 - Prob. 8DQCh. 28 - Prob. 9DQCh. 28 - Prob. 10DQ
Ch. 28 - 72 Inc. has developed a balanced scorecard with...Ch. 28 - Bluetiful Inc. has the following strategic...Ch. 28 - Moses Moonrocks Inc. has developed a balanced...Ch. 28 - Prob. 4BECh. 28 - Lonnies Shipping Co. is considering switching to...Ch. 28 - Henrys Cafe is a local restaurant that is growing...Ch. 28 - American Express Company is a major financial...Ch. 28 - Eat-n-Run Inc. owns and operates 10 food trucks...Ch. 28 - Prob. 4ECh. 28 - Apples Oranges Inc. is trying to become more...Ch. 28 - The following is the balanced scorecard for Smith...Ch. 28 - Prob. 7ECh. 28 - Coulson and Company is a large retail business...Ch. 28 - Rizzo Goal Inc. produces and sells hockey...Ch. 28 - Silver Lining Inc. has a balanced scorecard with a...Ch. 28 - Two departments within Cougar Gear Inc. are...Ch. 28 - Sunny Nights Inc. is completely powered by the...Ch. 28 - Instructions 1.Label each element of the balanced...Ch. 28 - Strategic initiatives and CSR Obj. 2, 4 Get...Ch. 28 - Hyperflash Inc. has a balanced scorecard that...Ch. 28 - Instructions 1.Based on the balanced scorecard and...Ch. 28 - Strategic initiatives and CSR Blue Skies Inc. is a...Ch. 28 - Eye Swear Inc. has a balanced scorecard that...Ch. 28 - Den-Tex Company is evaluating a proposal to...Ch. 28 - Prob. 2MADCh. 28 - Analyze CSR initiatives at Green Manufacturing...Ch. 28 - Prob. 1TIFCh. 28 - Blake McKenzie Tax Services is a company serving...Ch. 28 - Young Manufacturing Company is a startup...Ch. 28 - The fundamental concept behind strategic...Ch. 28 - Which of the following statements regarding the...Ch. 28 - The balanced scorecard provides an action plan for...Ch. 28 - Which of the following statements best describes...Ch. 28 - A sign of the successful implementation of a...
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
- 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.arrow_forwardYou recently joined ABC Limited, a small company holding a leading position in an embryonic market. You notice that your boss is very optimistic about the company and argues that ABC Limited's future is ensured. Your boss validates his argument by providing the following reasons. • ABC Limited has sixty percent share of the market due to the lowest cost structure, and • The company has the most reliable and highest-valued products. Required: You are required to write a memo to your boss outlining why the assumptions posed might be incorrect.arrow_forwardRose Oil Cosmetics plans to grow its company by offering a new line of anti-aging products that are superior and uniquely different than its competitor's products. Rose Oil knows that it needs to invest heavily in R&D and innovative methods to ensure that it can achieve its goal. Identify two key elements that you would expect to see included in the balanced scorecard for each of the perspectives (financial, customer, internal business, and learning and growth) for Rose Oil. Start a New Threadarrow_forward
- 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 &…arrow_forwardBekah and Rafael, supervisors in the Human Resources Department at James Manufacturing, are tasked with determining appropriate performance metrics for the learning and growth perspective of their company's balanced scorecard. Which of the following is the best metric for this situation?arrow_forwardRH Bhd is just starting up. The management team has decided from the beginning that decentralization was the preferred organizational style and has made this clear in all interviews and discussions with potential employees. Mr. Pang, the CEO, is unsure about the best way to evaluate his division managers. He has heard the terms return on investment, residual income, economic value added, and flexible budgets but wants to know the pros and cons of each. Electronic Telephone Systems (ETS), a division of RH Bhd buys and installs modular office components. For the most recent year, the division had the following performance targets: Asset turnover Profit margin Target rate of return on investments for RI Cost of capital Income tax rate 2.5 6% 13% 10% 40% Actual information concerning the company's performance for last year follows: Total assets at beginning of year Total assets at end of year Total invested capital (annual average) Sales RM3,600,000 RM5,300,000 RM8,000,000 RM9,000,000…arrow_forward
- Imagine you are starting the firm with your Team and you are all college seniors with limited work experience (as probably some of you are!). You may not have impressive credentials to include in the management team section of your business plan. How can you construct this section of your plan, and the company itself, in a way that reassures the readers of the plan that you know what you're doing and will get the advice you need to launch a successful company?arrow_forwardLadbrecks was founded by members of the Ladbreck family in the 1880s. The first store opened under the name Ladbreck Dry Goods. Building on its history of excellence in customer service, the company initiated its performance-based incentive plan to support its stated firm-wide strategy of "customer emphasis" with "employee empowerment." Management expected it to result in further enhancement of customer service and, consequently, in an increase in sales generated at its stores. The plan was implemented in stores sequentially as company managers intended to examine and evaluate the plan's impact on sales and profitability. By the end of 1994, ten stores had implemented the plan. In 1995, ten more stores implemented the plan, bringing the total to 20 out of a total of 50. Management decided to call you in to provide an independent assessment. While the company thought that sales had increased with the plan's implementation, the human resource department did not know exactly…arrow_forwardCreating Balanced Scorecard? that Support Different Strategies The Midwest Consulting Group (MCG) helps companies build balanced scorecards. As part of its marketing efforts. MCG conducts an annual balanced scorecard workshop for prospective clients. As MCG’s newest employee, your boss has asked you to participate in this year’s workshop by explaining to attendees how a company’s strategy determines the measures that are appropriate for its balanced scorecard. Your boss has provided you with the excerpts below from the annual reports of two current MCG clients. She has asked you to use these excerpts in your portion of the workshop. Excerpt from Applied Pharmaceuticals’ annual report: The keys to our business are consistent and timely new product introductions and manufacturing process integrity. The new product introduction side of the equation is a function of research and development (R&D) yield (e.g., the number of marketable drug compounds created relative to the total number…arrow_forward
- Imagine as a divisional manager and currently a member of a committee which is considering two product investments proposed by two other divisional managers: Jill and Bill. While walking over to the presentations, Jill seems rather arrogant. He mentions that he golfs with the CEO, is a key player in the firm, and that the divisional manager could really learn a lot from him. In thinking over the projects after the presentations, the manager finds he is really leaning toward Bill’s proposal even though the projects are quite similar in terms of estimated cash lows and risks. How can this be explained in behavioral finance? Please provide references and in text citations.arrow_forwardYou are about to interview at a company and want to get a good read of how much political behavior can be found there so you look for evidence of the following: O Using objective criteria in performance appraisals O Evaluating performance using a process that is explained in detail in advance O Upholding stellar (high) performance standards O Avoiding zero-sum reward practices O Ensuring that employees' roles are cleararrow_forwardEve Corporation is considering a significant expansion to its product line. The sales force is excited about the opportunities that the new products will bring. The new products are a significant step up in quality above the company’s current offerings but offer a complementary fit to its existing product line. Sergei Bates, senior production department manager, is very excited about the high-tech new equipment that will have to be acquired to produce the new products. Will Smith, the company’s CFO, has provided the following projections based on results with and without the new products. Without New Products With New Products Sales revenue $10,000,000 $16,000,000 Net income $500,000 $960,000 Average total assets $5,000,000 $12,000,000 Instructions a) Compute the company’s return on assets, profit margin, and asset turnover, both with and without the new product line. b) Discuss the implications that your findings in part (a) have for the company’s decision.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:Cengage
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,
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage
Elements of cost | Direct and Indirect: Material, Labor, & Expenses; Author: Educationleaves;https://www.youtube.com/watch?v=UFBaj6AHjHQ;License: Standard youtube license