Question 146 The balanced scorecard as a measure of corporate performance has

Question 146 the balanced scorecard as a measure of

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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
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Exercises ABC, TQM, JIT, BSC (Chapters 11 and 14) Group XA Cristiana Parisi 21.02.2020 5 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 Cost accounting systems and/or performance measures should be changed when the results are significantly dysfunctional that reduce the firm's ability to compete or even survive. Usually, other parts of the firm's organizational architecture have changed because of external threats or opportunities . Chapter 11 – Exercises Exercise 11.1 - The Maui Seminar The current absorption-based accounting system has survived (evolved?) up until now and is similar to the system used by many other firms in our type of industry. The fact that we hold a competitive position in the marketplace with the current system implies that it is at least adequate and has many unseen advantages (bear and marmot). Activity-based cost systems are advantageous in plants where the output is not homogeneous in inputs or volumes. An analysis needs to be performed to determine if product costs derived from an activity-based cost system are significantly different from product costs as currently calculated. Moreover, even if some product costs change dramatically, what organizational effects will be generated with respect to performance evaluation? Who will be the winners and losers inside the firm and whose "ox will be gored?" Activity-based cost systems are more costly to establish and maintain than absorption-based systems. ABC usually improves the accuracy of product costs for decision making. However, in improving costing for decision management, there can be a deterioration of the accounting system for decision control. Managers’ incentive plans will have to be adjusted to accommodate the new accounting figures. Organizational conflicts are certain to occur. There will be winners and losers.
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  • Fall '18
  • XA Cristiana Parisi

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