Exam 12: Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard

Air Comfort manufactures air conditioning compressors in St. Louis, Missouri. The following information pertains to operations in March: Required: Compute the following operational measures: (1) manufacturing cycle efficiency; (2) man¬ufacturing cycle time; (3) velocity.

Norwegian Resort Tours (NRT), which operates in a very competitive marketplace, is considering four categories of performance measures: (1) profitability measures, (2) customer-satisfaction measures, (3) efficiency and quality measures, and (4) learning and growth measures. The company assigns one manager to each tour resort to oversee the resort's general operations. If NRT desired to adopt a balanced-scorecard approach, which measures should the firm use in the evaluation of its managers?

A responsibility center in which the manager is held accountable for the profitable use of assets and capital is commonly known as a (n):

A cost center manager does not have the ability to produce revenue.

Gulf Coast Enterprises (GCE) operates 87 stores and has three divisions: Florida, Georgia, and Alabama. Which of the following costs would not appear on Georgia's portion of GCE's segmented income statement?

The performance reports generated by a responsibility accounting system often form a "hierarchy of performance reports." Explain what is meant by this term.

The typical balanced scorecard is best described as containing both financial and nonfinancial performance measures.

Performance reports help managers use management by exception and effectively control operations.

Terrific Threads is an upscale boutique that operates various stores throughout Florida. The company, which has three divisions (Miami, Naples, and Tampa), reported the following information for the year just ended (in thousands):