Problem 1. Balanced Scorecard
Balanced scorecard is one of those management fads that will disappear several years in the future. In addition, managerial accounting should be about the numbers and not subjective criteria. Please support or refute the above statements.
Problem 2. Allocation of Costs, or Not
Information technology costs are currently being charged at internally developed standard rates. Client departments believe that the costs are too high and have cut back on expenditures, including replacements and repairs. The IT department cannot deploy upgrades or current software on older computers and find it increasingly difficult to repair older computers. You have heard that if these charges were eliminated, IT costs would increase dramatically. What do you do?
Problem 3. For each of the types of common costs in the first group, select the most appropriate allocation base from the second group:
-Common Cost-
- Building Utilities
- Payroll Accounting
- Insurance
- Equipment Repair
- Quality Control Inspection
-Allocation Base-
- Value of Equipment and Inventories
- Number of Units Produced
- Number of Employees
- Space Occupied
- Number of Service Calls
Problem 4. Balanced Scorecard-Performance Measures.
Match each of the following performance measures to one or more of the four perspectives of the balanced scorecard. Note that a performance measure could measure performance for more than one perspective.
-Performance Measures-
- Employee productivity
- Employee satisfaction
- Return on investment
- Customer satisfaction
- Employee turnover
- On-time delivery performance from suppliers
- Percentage of customers who are repeat customers
- On-time delivery performance to customers
- Product quality
-Balanced Scorecard perspectives-
- Financial
- Customer
- Internal business
- Learning and growth