A Financial increase earnings per share by 012 B Customer add customer value C

A financial increase earnings per share by 012 b

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A. Financial: increase earnings per share by $0.12 B. Customer: add customer value C. Learning and innovation: recruit 50 new staff from leading schools D. Internal processes: reduce programming errors by 3% E. None of the above Question 14.6 The balanced scorecard as a measure of corporate performance has been both criticized and lauded. Which is true? A. Deviation from a single financial measure, such as EPS, ROA or EVA, in order to focus on the multiple measures of the balanced scorecard may cause management to reduce firm value B. Managers can focus on multiple performance indicators simultaneously C. Maximizing customer satisfaction maximizes value of the firm D. Maximizing employee satisfaction and learning maximizes value of the firm E. None of the above Question 14.7 Internal accounting systems, including performance measures, affect behavior. It is often suggested that people pay attention to the dimensions of their work performance that are measured and rewarded. When, if ever, should these systems be revised? A. Extremely seldom: it is too costly B. Rarely: people understand how to perform under the present system C. Sometimes: whenever it can be shown that significant dysfunctional results exist D. Often: whenever management consultants develop a ‘new and improved' system or measure E. Never
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Exercises ABC, TQM, JIT, BSC (Chapters 11 and 14) Group XA Cristiana Parisi 21.02.2020 4 Chapter 11 – Exercises Exercise 11.1 - The Maui Seminar Your boss, the vice president of corporate accounting, has just returned from a two-week seminar in Maui on activity-based cost accounting. He says he wants to completely overhaul the company’s existing absorption-based accounting system. “Activity-based costing is the wave of the future and will allow us to make better product-line decisions and therefore be more competitive in the marketplace,” he asserts. He wants you to start implementation immediately, but he would like your comments before you begin. How do you respond? Exercise 11.2 - Assign overhead costs using traditional absorption costing and ABC Domestic Fabrics has budgeted overhead costs of $955,000. It has allocated overhead on a plant-wide basis to its two products (wool and cotton) using direct labour hours which are estimated to be 477,500 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are Cutting (cost driver is machine hours) and Design (cost driver is number of setups). Overhead allocated to the Cutting cost pool is $400,000, and $555,000 is allocated to the Design cost pool. Additional information related to these pools is as follows. Wool Cotton Total Machine hours 100,000 100,000 200,000 Number of setups 1,000 500 1,500 Required: a. Determine the amount of overhead allocated to the wool product line and the cotton product line using activity based costing b. What is the difference between the allocation of overhead to the wool and cotton product lines using activity-based costing versus the traditional approach, assuming direct labour hours were incurred evenly between the wool and the cotton?
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