Exam 13: The Balanced Scorecard: Strategic-Based Control

The following measures belong to one of four perspectives on the balanced scorecard: 1. Return on investment 2. Time to market 3. Number of new customers 4. Percentage of revenues from new sources 5. Quality costs 6. Employee productivity Required: a. Identify the perspective appropriate for each measure listed above. b. Suggest a possible strategic objective that might be associated with each measure.

The balanced scorecard becomes a means of communicating the strategy of the organization to its employees and managers. What might be a downside of communicating this information?

In a strategic-based responsibility accounting system, stretch targets are established for individual performance measures.

Strategy translation is concerned with

Outcome measures that are expressed in monetary terms are called measures.

Training hours is an example of a(n) measure.

In order for the balanced scorecard to succeed, the entire organization must be behind it.

Which of the following is NOT a limitation of activity-based responsibility accounting?

A testable strategy is a set of linked objectives aimed at an overall goal.

Strategy translation means specifying objectives and percentage of revenues from sale of products.

On-time delivery performance is calculated as

The formula for computing Manufacturing Cycle Efficiency (MCE) is

Homegrown, Inc., manufactures a product that experiences the following activities: Processing (three departments) 60 hours Moving (four moves) 15 hours Waiting time 45 hours Storage time (before delivery) 120 hours The MCE for the product is

For purposes of strategic alignment, incentive compensation should be based upon

A manufacturing cell has the theoretical capability of producing 40,000 microchips per quarter. The conversion cost per quarter is $25,000. There are 4,000 production hours available within the cell per quarter. The theoretical velocity per hour is

Activity-based responsibility accounting adds which of the following to the financial-based responsibility accounting perspective?

Failure of a strategy might be due to

The most common form of strategic-based responsibility accounting system is the worksheet.

What are the two additional perspectives that are added to the activity-based approach to achieve strategic-based responsibility?

Activity-based responsibility accounting employs dynamic standards and emphasizes and supports continuous improvement.