Exam 14: Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Wilderness Travels Bicycle Company's had a change in management.The new managerial accountant reviews the variance in units sold in 2011 compared to 2012 to assess the revenue effect of growth that occurred in sales volume.In 2011,2,460,000 units were sold;and,2,632,000 were sold in 2012,while the price per unit is set at $69.99. Required Compute the revenue effect of growth in 2011 and 2012.Indicate whether the difference is a favorable,or unfavorable,U,variance.

What is reengineering?

How do managers evaluate the success or failure of their strategy and its implementation?

An organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements,elimination of waste,and tight cost control is:

Engineered costs result from a cause-and-effect relationship between the cost driver and the ________.

The growth component of the change in operating income measures the increase in revenues minus the increase in costs of selling more units.

Companies frequently use balanced scorecards to evaluate and reward managerial performance and to influence managerial behavior.

________ aid(s)managers in rethinking business practices and improving performance on measures such as cost,quality,service,speed,and customer satisfaction.

In 2011,Monarch Aircraft Company sold 36,000 jet panels at $8,000 per panel.In 2012,Monarch lowered the price per panel as a result of unforeseen market forces to $6,000,but sold an equal number of panels. Required Compute the revenue effect of price recovery in 2011 and 2012.Was the variance favorable,F,or unfavorable,U?

Managers use product differentiation strategies to decrease brand loyalty and charge lower prices.

Which of the following is not an initiative of the learning-and-growth perspective?

A ________ is a diagram that describes how an organization creates value by connecting strategic objectives in explicit cause-and-effect relationships with each other in the financial,customer,internal business process,and learning and growth perspectives.

Managers reduce defect rates and improve manufacturing yields to improve product quality.

Reengineering efforts result in all of the following except:

In which step of the five-step decision-making framework does a manager conclude he/she cannot develop new and innovative products in a cost-effective way?

An organization's ability to offer products or services its customers perceive to be superior,or unique,relative to products or services of its competitors is:

How do gains in the learning-and-growth perspective lead to superior financial performance?

Which of the following is true about cost leadership?

The financial perspective of the balanced scorecard focuses on which of the following ideas?

Which of the following is a perspective the scorecard uses to measure the profits and value created for the shareholder?