Problem
Your studies this week focus on cost behavior, decision making, and performance analysis using the balanced scorecard. this task requires you to apply these concepts to hypothetical business situations.
Complete Parts I and II.
Part I. Decision Making
In the reading this week, you've learned about a variety of management decisions including:
i. Make vs. buy (outsourcing)
ii. Accepting a special order
iii. Sell as-is or process further
iv. Keep or discontinue a product or operating segment
v. Product mix when there are capacity constraints
vi. Keep or drop an existing customer
Part I Requirements:
Select two of the decision types listed above. For each selected decision type:
i. Construct a hypothetical situation in which management is faced with this decision type.
ii. Explain the circumstances including both quantitative and qualitative factors which will be considered.
iii. Evaluate relevant costs including differential costs, avoidable costs, and opportunity costs.
iv. Identify irrelevant costs including sunk costs and fixed costs.
v. Recommend the most appropriate decision for management based on your analysis.
Part I of your assignment should be two to three pages and should include at least one scholarly resource outside of the textbook.
Part II. Balanced Scorecard
Select one of the industries listed below:
i. Manufacturing
ii. Technology
iii. Construction
iv. Healthcare
v. Transportation
vi. Hospitality
vii. Retail
Choose a company (real or hypothetical) within the selected industry to use for this part of the assignment.
Part II Requirements
i. Provide a brief overview of the company that you've chosen including the industry, core operations, location, and estimated number of employees.
ii. For each balanced scorecard perspective: (a) Financial perspective; (b) Customer perspective; (c) Internal-Business-Process perspective; and (d) Learning-and-Growth perspective, identify a minimum of eight metrics that the company might use to evaluate performance. For each perspective, explain why you've chosen the eight metrics and how they will enable management to better understand the operational and financial performance of the business.