Question : 13.3   Identify balanced scorecard measures appropriate to a cost leadership : 1186020

 

13.3   Identify balanced scorecard measures appropriate to a cost leadership strategy.

 

1) The accounting scorecard translates an organization’s mission and strategy into a comprehensive set of performance measures that provides the framework for implementing its strategy.

 

2) External business process perspective focuses on internal operations that further both the customer perspective by creating value for customers and the financial perspective by increasing shareholder wealth.

 

3) Learning and growth perspective identifies the capabilities in which the organization must excel to achieve superior internal processes that create value for customers and shareholders.

 

4) When implementing a balanced scorecard, one should assume the cause-and-effect linkage to be precise.

 

5) ________ translates an organization’s mission and strategy into a comprehensive set of performance measures that provides the framework for implementing its strategy.

A) Strategy

B) Product differentiation

C) Cost leadership

D) The balanced scorecard

E) Planning

6) The return-on-investment ratio is an example of a scorecard measure under the

A) internal business process.

B) customer perspective.

C) financial perspective.

D) learning and growth perspective.

E) manufacturing perspective.

 

7) The number of complaints about the company’s product is a potential measure of the

A) financial perspective.

B) shareholder value.

C) internal business process.

D) learning and growth perspective.

E) customer perspective.

 

8) Manufacturing cycle efficiency is a potential measure of the

A) financial perspective.

B) customer perspective.

C) internal business process perspective.

D) learning and growth perspective.

E) real-time feedback capacity.

 

9) Surveys of employee satisfaction is a potential measure of the

A) financial perspective.

B) customer perspective.

C) internal business process perspective.

D) learning and growth perspective.

E) shareholder value.

Use the information below to answer the following question(s).

 

Following a strategy of product differentiation, Luke Company makes a high-end Appliance, AP15. Luke Company presents the following data for the years 1 and 2.

 

 

Year 1

Year 2

Units of AP15 produced and sold

20,000

21,000

Selling price

$200

$220

Direct materials (square metres)

60,000

61,500

Direct materials costs per square metre

  $20

$22

Manufacturing capacity for AP15 (units)

25,000

25,000

Total manufacturing conversion costs

$1,000,000

$1,100,000

Manufacturing conversion costs (per unit of capacity)

$40

$44

Selling and customer- service capacity (customers)

60

58

Total selling and customer-service costs

$360,000

$362,500

Cost per customer of selling and customer-service capacity

$6,000

$6,250

 

Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Neither conversion costs or customer-service costs are affected by changes in actual volume. Luke Company has 46 customers in year 1 and 50 customers in year 2. The industry market size for high-end appliances increased 5% from year 1 to year 2.

 

10) Which of the following is a measure of the financial perspective?

A) reengineering process

B) market share in the high-end appliance market

C) order delivery time

D) production cycle time

E) operating income growth from changing higher margins for AP15