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 5E
1.
To determine
Explain the manner in which scorecard measurement differs from that of an activity-based management system.
2.
To determine
Explain the meaning of historical and predictive measures and state the importance of them in predicting the company’s strategy.
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Explain the term "balanced scorecard" in a few words. What does it have to do
with a business's operations?
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.
Please explain how the Balanced Scorecard can be employed to assist a company in executing its strategy.
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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- Which of the following does not describe a management control system? A. establishes a companys strategic goals B. implements a companys strategic goals C. monitors a companys strategic goals D. a system that only measures profitabilityarrow_forwardWhich of the following is not an objective used in the balanced scorecard approach? Customer Financial Vendor Learning and growtharrow_forwardWhich of the following is nor a common goal of an organization? A. operational efficiency B. being acquired by another business C. achieving strategic goals D. measuring financial performancearrow_forward
- Which of the following statements is false? A. The four dimensions of performance that are considered in a balanced scorecard are financial, customer, internal process, and learning and growth B. A balanced scorecard will include qualitative and quantitative measures. C. Stakeholders cannot include stockholders. D. A balanced scorecard is the compatibility between personal goals and the goals of the organization.arrow_forwardComponents 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_forwardAn important goal of a responsibility accounting framework is to help ensure which of the following? A. decision-making is made by the top executives. B. investments made by each segment are minimized. C. identification of operating segments that should be closed. D. segment and company financial goals are congruent.arrow_forward
- The balanced scorecard provides an action plan for achieving competitive success by focusing management attention on critical success factors. Which of the following is not one of the competitive success factors commonly found on the balanced scorecard? a. Competitor business strategies b. Financial performance measures c. Internal business processes d. Learning and growtharrow_forwardWhich of the following statements regarding the balanced scorecard is not correct? a. It seeks to address the problems associated with traditional financial measures used to assess performance. b. The notion of value chain analysis plays a major role in the drawing up of a balanced scorecard. c. It relies on the perception of the users with regard to service provided. d. It is directly derived from scientific management theories.arrow_forwardManagerial accounting produces information: to meet the needs of external users that is often focused on the future to meet the needs of investors that follows the rules of GAAParrow_forward
- 6.If return on investment is a measure used on the balanced scorecard, under which perspective would it be listed?A)Financial perspectiveB)Customer perspectiveC)Learning and growth perspectiveD)Internal business perspectiveE)None of the above.7.What term is used to describe the continuous process of measuring a company's own products, services, and activities against competitors' performance?A)Balanced scorecardB)Business-level strategyC)BenchmarkingD)Internal calibrationE)None of the above.8.Which of the following is not an objective of continuous improvement?A)Improvement of the activities in which the organization engages through documentation and understanding.B)Elimination of activities that are nonvalue-added.C)Improvement of the efficiencies of activities that are value-added.D)Increasing activities that are considered nonvalue-added.E)None of the above.arrow_forwardWhich of the following statements is true? 1. Financial measures such as ROI are generally better than nonfinancial measures of key success drivers such as customer satisfaction as lead indicators of future financial performance. II. The performance measures on a balanced scorecard tend to fall into four groups: financial measures, customer measures, internal business process measures, and learning and growth measures. III. Financial measures such as ROI and residual income as well as operating measures may be included in a balanced scorecard. Multiple Choice Both statements II and Ill are true. None of the statements are true. Both statements I and Ill are true. All of the statements are true. planningarrow_forwardThe balanced scorecard describes all of the following except which one? a. The descriptions of critical initiatives for the organization’s performance. b. The strategic goals. c. The related measures associated with strategic and tactical goals. d. The definition of strategic businessarrow_forward
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