Ducan pizzas is a chain of pizza stores pizza are made fresh in syore and then deliverd to customers by a fleet dtivers the senior management's team has identified the stragic priorities for tye business as on time delivery and product quality required for each strategic priorities suggest three performance measures if the company is successful in achieving challenging targets for these performance measures will it also necessarily achieve high profitability?
Q: Balanced Scorecard; Strategy Map The following are critical success factors for Dell Inc:∙ Product…
A:
Q: Silver Lining Inc. has a balanced scorecard with a strategy map that shows that delivery time and…
A: Solution- Target hours from orderd to delivered =40 hours Actual average total hours=27.5+16.3=43.8…
Q: Compute the total savings possible as reflected by Kit’s handout. Assume that resource spending is…
A:
Q: Taylor Construction builds custom homes in Dallas, Texas. Brandon Taylor knows that his future…
A: Balanced scorecard: It is a tool to measure the performance that relates a company’s strategy to…
Q: Strategic decisions and management accounting. Consider the following series of independent…
A: Cost leadership implies producing products at the lowest cost without compromising on the quality of…
Q: Techno Inc. has two divisions: Auxiliary Components and Audio Systems. Divisional managers are…
A:
Q: Clason, Inc. manufactures door panels. Suppose clason is considering sending the following amounts…
A: Cost of new quality program = 68000 + 27000+ 39000 +58000 = $ 192000 Cost of old program = 86000+…
Q: Quick Stop operates 1,000 convenience stores throughout the United States. The company’s slogan is…
A: Management Control System: The management control system is a system made to collect information…
Q: a) For each of the strategic priorities, suggest three performance measures. (6 marks) b) If the…
A: Given information is: Duncan’s Pizzas is a chain of pizza stores. Pizzas are made fresh in-store,…
Q: Rizzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The…
A: Customer retention rate is the actual percentage of existing customers who remain customers after a…
Q: Balanced scorecard. Pineway Electric manufactures electric motors. It competes and plans to grow by…
A: Cost Leadership Strategy: This is a strategy in which a firm distinguishes it by lowering market…
Q: Balanced scorecard. Pineway Electric manufactures electric motors. It competes and plans to grow by…
A:
Q: A marketing manager for the Dental Products Division of a large firm is considering whether to…
A: Budget:- The term budget is defined as the estimation of revenue and expenditure of a particular…
Q: The following list gives a number of measures associated with the Balanced Scorecard:a. Number of…
A: Balance-scorecard is a strategic vision to measure the performance and in evaluating various…
Q: ABC Data; Resource-Capacity Planning; Nonfinancial Performance Indicators ZenonComputer competes at…
A: Activity Based Costing Activity Based Costing is a accounting costing system which determines the…
Q: Measure Maps Silver Lining Inc. has a balanced scorecard with a strategy map that shows that…
A: Working notes: Target hours from ordered to delivered = 30 Erroneous shipments per year is not more…
Q: Calculate ROI for each division using net book value of total assets
A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…
Q: Measure Maps Silver Lining Inc. has a balanced scorecard with a strategy map that shows that…
A: We have the following information: The company’s target hours from ordered to delivered is 20 Every…
Q: Given the following information for the Rajin’ Cajun line, what is management’s best option for…
A: Operating income refers to the income or gross profit generated by the company from its operations…
Q: Measure Maps Silver Lining Inc. has a balanced score card with a strategy map that shows that…
A: Average hours from ordered to shipped is 25.5 Average shipping time(hours from shipped to delivered)…
Q: Assume service scores for the area you manage, Harrah’s Metropolis hotel housekeeping, have declined…
A: To effectively and productivity evaluate and screen these vital execution pointers must be…
Q: Hurney Corporation manufactures plastic water bottles. It plans to grow by producing high-quality…
A: A ) Hurney’s strategy is cost leadership strategy. The strategy of the company which adopt this…
Q: Planning and control decisions. Gregor Company makes and sells brooms and mops. It takes the…
A: Planning and Control Decision:
Q: Cempaka Enterprise manufactures pretty cardboard boxes. The company competes and plans to grow in…
A: Management accounting is the act of distinguishing, estimating, investigating, deciphering, and…
Q: Duncan’s Pizzas is a chain of pizza stores. Pizzas are made fresh in-store, and then delivered to…
A: a) Suggest three performance measures for each of the strategic priorities: Following are the three…
Q: Ken Yalters, the COO of FreshSkin, asked his cost management team for a product line profitability…
A: Profit before taxes can be calculated by deducting research and development expenses and selling…
Q: Adams Corporation evaluates divistonal managers based on Return on Investment (ROI) and nas provided…
A: Return on Investment/Residual Income ROI provide the profitability of any number of investments…
Q: Only help with parts c, g, I and J Scorecard Measures, Strategy Translation At the end of 20x1,…
A: c. Assuming 1 unit per consumer Total customer=Total unit sold=Actual production Percentage of…
Q: Cathy’s Classic Clothes is a retailer that sells to professional women in the northeast. The firm…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Pizza Capers: Business Improvement The Situation: Pizza Capers Burpengary is a not-for-profit pizza…
A: Labor cost is the cost which has been incurred by the company on the employees means the benefits…
Q: Measure Maps Silver Lining Inc. has a balanced scorecard with a strategy map that shows that…
A: We have the following information: The company’s target hours from ordered to delivered is 40 Every…
Q: Key success factors. Dominic Consulting has issued a report recommending changes for its newest…
A:
Q: Measure Maps Silver Lining Inc. has a balanced scorecard with a strategy map that shows that…
A: Target hours from ordered to delivered = 20 Erroneous shipments per year is not more than 55 Average…
Q: Suggest one performance measure for each dimension of the balanced scorecard for Coral Creations.…
A: Balanced scorecard relates to a strategic tool that checks and guides the business activities to…
Q: Many fast-food restaurants compete on lean business practices. Match each of the following…
A: Match each of the following activities at a fast-food restaurant with one of the three lean…
Q: Asia Aerials (AA) manufactures satellite dishes for receiving satellite television signals. AA…
A: Number of orders: 16,000 a year Each order contains 5.5 dishes so a total of 88,000 dishes (16,000 x…
Q: Measure Maps Silver Lining Inc. has a balanced scorecard with a strategy map that shows that…
A: Balanced scorecard is an extremely popular torm ot performance measurement systememployed in…
Q: Kwami Williams and Emily Cunningham of MoringaConnect must understand manufacturing costs to…
A: Manufacturing costs: It is the aggregate cost incurred by a business to produce goods in a…
Q: Duncan's Pizzas is a chain of pizza stores. Pizzas are made fresh in-store, and then delivered to…
A: Strategic Performance Measurement System: Strategic performance measurement system is an approach…
Q: Measure Maps Silver Lining Inc. has a balanced scorecard with a strategy map that shows that…
A: Average hours from ordered to shipped+Average shipping Time =27.5+15.3 Actual average total…
Q: a) For each of the strategic priorities, suggest three performance measures. b) If the company is…
A:
Q: izzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The company…
A: a. New customer retention rate is calculated as follows: New customer retention rate = Current…
Q: Total decrease in future profit=__________ Round your answer to two decimal places. Total decrease…
A:
Ducan pizzas is a chain of pizza stores pizza are made fresh in syore and then deliverd to customers by a fleet dtivers the senior management's team has identified the stragic priorities for tye business as on time delivery and product quality
required
for each strategic priorities suggest three performance measures
if the company is successful in achieving challenging targets for these performance measures will it also necessarily achieve high profitability?
Step by step
Solved in 2 steps
- Coulson and Company is a large retail business that has a firm-wide balanced scorecard. Recently, management has discussed the need for the balanced scorecard to be more relevant to each individual department of the company. Specifically, management wants to come up with unique scorecards for its Public Relations and Inventory Management departments. For both departments, management recognizes that properly and efficiently training employees is important. For these purposes, management gathers data on the median training hours per employee and new employee performance review ratings. For the Inventory Management Department, management is focused on reducing stockouts (running out of certain inventory items) and keeping accurate inventory counts. For these purposes, the company tracks the number of back orders and discrepancies between the physical and record counts of inventory, respectively. For the Public Relations Department, management is focused on improving the publics CSR image of the company and attracting new customers. Management measures these objectives using Forbes CSR Rating of Coulson and Company and the number of new customers, respectively. a. Identify the term for Coulson and Companys plan to create unique balanced scorecards for its individual departments. b. Draw the unique balanced scorecards of each department. Identify the departments common and unique measures, and include all the elements of the balanced scorecard that you can in your drawings, given the information provided.Two departments within Cougar Gear Inc. are Production and Sales. Each department has a unique scorecard, as follows: The Production Department scorecard focuses on the learning and growth and internal processes perspectives. The Sales Department scorecard focuses on the learning and growth and customer perspectives. Both scorecards have the learning and growth performance metrics of median training hours per employee and average employee tenure. The Production scorecard has the unique metrics of production time per unit and number of production shutdowns. The Sales scorecard has the unique metrics of percentage of customers who shop again and online customer satisfaction rating. The performance targets for each metric are shown in the tan boxes just under the performance metrics. The actual achieved metrics are shown in the red boxes just below the tan boxes. When evaluating both departments, Cougar Gears management looks at the median training hours per employee and average employee tenure metrics and subsequently decides to give the Sales Department a large bonus while giving the Production Department a minimal bonus. a. Determine and define the type of cognitive bias Cougar Gears management has exhibited in this instance. b. Determine which department would have received the larger bonus had the companys management not been biased in the evaluation. c. Discuss one advantage and one disadvantage of using unique balanced scorecards for different departments or divisions of a company.Jolene Askew, manager of Feagan Company, has committed her company to a strategically sound cost reduction program. Emphasizing life-cycle cost management is a major part of this effort. Jolene is convinced that production costs can be reduced by paying more attention to the relationships between design and manufacturing. Design engineers need to know what causes manufacturing costs. She instructed her controller to develop a manufacturing cost formula for a newly proposed product. Marketing had already projected sales of 25,000 units for the new product. (The life cycle was estimated to be 18 months. The company expected to have 50 percent of the market and priced its product to achieve this goal.) The projected selling price was 20 per unit. The following cost formula was developed: Y=200,000+10X1 where X1=Machinehours(Theproductisexpectedtouseonemachinehourforeveryunitproduced.) Upon seeing the cost formula, Jolene quickly calculated the projected gross profit to be 50,000. This produced a gross profit of 2 per unit, well below the targeted gross profit of 4 per unit. Jolene then sent a memo to the Engineering Department, instructing them to search for a new design that would lower the costs of production by at least 50,000 so that the target profit could be met. Within two days, the Engineering Department proposed a new design that would reduce unit-variable cost from 10 per machine hour to 8 per machine hour (Design Z). The chief engineer, upon reviewing the design, questioned the validity of the controllers cost formula. He suggested a more careful assessment of the proposed designs effect on activities other than machining. Based on this suggestion, the following revised cost formula was developed. This cost formula reflected the cost relationships of the most recent design (Design Z). Y=140,000+8X1+5,000X2+2,000X3 where X1=MachinehoursX2=NumberofbatchesX3=Numberofengineeringchangeorders Based on scheduling and inventory considerations, the product would be produced in batches of 1,000; thus, 25 batches would be needed over the products life cycle. Furthermore, based on past experience, the product would likely generate about 20 engineering change orders. This new insight into the linkage of the product with its underlying activities led to a different design (Design W). This second design also lowered the unit-level cost by 2 per unit but decreased the number of design support requirements from 20 orders to 10 orders. Attention was also given to the setup activity, and the design engineer assigned to the product created a design that reduced setup time and lowered variable setup costs from 5,000 to 3,000 per setup. Furthermore, Design W also creates excess activity capacity for the setup activity, and resource spending for setup activity capacity can be decreased by 40,000, reducing the fixed cost component in the equation by this amount. Design W was recommended and accepted. As prototypes of the design were tested, an additional benefit emerged. Based on test results, the post-purchase costs dropped from an estimated 0.70 per unit sold to 0.40 per unit sold. Using this information, the Marketing Department revised the projected market share upward from 50 percent to 60 percent (with no price decrease). Required: 1. Calculate the expected gross profit per unit for Design Z using the controllers original cost formula. According to this outcome, does Design Z reach the targeted unit profit? Repeat, using the engineers revised cost formula. Explain why Design Z failed to meet the targeted profit. What does this say about the use of unit-based costing for life-cycle cost management? 2. Calculate the expected profit per unit using Design W. Comment on the value of activity information for life-cycle cost management. 3. The benefit of the post-purchase cost reduction of Design W was discovered in testing. What direct benefit did it create for Feagan Company (in dollars)? Reducing post-purchase costs was not a specific design objective. Should it have been? Are there any other design objectives that should have been considered?
- Henrys Cafe is a local restaurant that is growing quickly. While the company does not yet have a balanced scorecard, Henry has mentioned that being efficient in producing meals is a high priority of his business and appears to be a significant driver of profits. Henry tells you he gathers the following data: sales, cost of labor, employee turnover, labor hours, cost of ingredients, overhead costs, average training hours per employee, number of erroneous meals prepared, the time when orders were made (e.g., at 12:43 PM), the time when orders were delivered, and number of customers per day. a. Under which performance perspective on the balanced scorecard should Henrys strategic objective to efficiently produce meals be placed? b. Based on the data collected, what are at least three performance metrics Henry could develop to measure his strategic objective to efficiently produce meals? c. Identify whether the performance metrics you suggested in part (b) are leading or lagging indicators relative to a performance metric total cost of production per meal.Rizzo Goal Inc. produces and sells hockey equipment, often custom made for online orders. The company has the following performance metrics on its balanced scorecard: days from ordered to delivered, number of shipping errors, customer retention rate, and market share. A measure map illustrates that the days from ordered to delivered and the number of shipping errors are both expected to directly affect the customer retention rate, which affects market share. Additional internal analysis finds that: Every shipping error over three shipping errors per month reduces the customer retention rate by 1.5%. On average, each day above three days from ordered to delivered yields a reduction in the customer retention rate of 1%. Each day before three days from order to delivery yields an increase in the customer retention rate of 1%, on average. Rizzo Goal Inc.s current customer retention rate is 60%. The company estimates that for every 1% increase or decrease in the customer retention rate, market share changes 0.5% in the same direction. Rizzo Goal Inc.s current market share is 21.4%. Ignoring any other factors, if the company has six shipping errors this month and an average of 3.5 days from ordered to delivered, determine (a) the new customer retention rate and (b) the new market share that Rizzo Goal Inc. expects to have.Communication The controller of New Wave Sounds Inc. prepared the following product profitability report for management, using activity-based costing methods for allocating both the factory overhead and the marketing expenses. As such, the controller has confidence in the accuracy of this report. In addition, the controller interviewed the vice president of marketing, who provided the following insight into the companys three products: The home theater speakers are an older product that is highly recognized in the marketplace. The wireless speakers are a new product that was just recently launched. The wireless headphones are a new technology that has no competition in the marketplace, and it is hoped that they will become an important future addition to the companys product portfolio. Initial indications are that the product is well received by customers. The controller believes that the manufacturing costs for all three products are in line with expectations. Based on the information provided: 1. Calculate the ratio of gross profit to sales and the ratio of operating income to sales for each product. 2. Write a brief (one-page) memo using the product profitability report and the calculations in (a) to make recommendations to management with respect to strategies for the three products.
- The Chocolate Baker specializes in chocolate baked goods. The firm has long assessed the profitability of a product line by comparing revenues to the cost of goods sold. However, Barry White, the firms new accountant, wants to use an activity-based costing system that takes into consideration the cost of the delivery person. Following are activity and cost information relating to two of Chocolate Bakers major products: Using activity-based costing, which of the following statements is correct? a. The muffins are 2,000 more profitable. b. The cheesecakes are 75 more profitable. c. The muffins are 1,925 more profitable. d. The muffins have a higher profitability as a percentage of sales and, therefore, are more advantageous.As manager of department B in MarIeys Manufacturing, based on the costs you identified in the previous exercise for further research, how does this impact the financial performance of your department, and what might be some questions you want to ask or solutions you might propose to Marleys management?The controller of Emery, Inc. has computed quality costs as a percentage of sales for the past 5 years (20X1 was the first year the company implemented a quality improvement program). This information is as follows: Required: 1. Prepare a trend graph for total quality costs. Comment on what the graph has to say about the success of the quality improvement program. 2. Prepare a graph that shows the trend for each quality cost category. What does the graph have to say about the success of the quality improvement program? Does this graph supply more insight than the total cost trend graph does? 3. Prepare a graph that compares the trend in relative control costs versus relative failure costs. Comment on the significance of this trend.
- Classify each of the following performance measures into the balanced scorecard perspective to which it relates: financial perspective, internal operations perspective, learning and growth perspective, or customer perspective. A. Employee satisfaction surveys B. Units of waste per production process, uniformity of products and inventory control C. Number of energy-efficient bulbs replaced D. Management training course certificates awarded E. Divisional profit F. Number of customer referralsThe following series of statements or phrases are associated with product life-cycle viewpoints. Identify whether each one is associated with the marketing, production, or customer viewpoint. Where possible, identify the particular characteristic being described. If the statement or phrase fits more than one viewpoint, label it as interactive. Explain the interaction. a. Sales are increasing at an increasing rate. b. The cost of maintaining the product after it is purchased. c. The product is losing market acceptance and sales are beginning to decrease. d. A design is chosen to minimize post-purchase costs. e. Ninety percent or more of the costs are committed during the development stage. f. The length of time that the product serves the needs of a customer. g. All the costs associated with a product for its entire life cycle. h. The time in which a product generates revenue for a company. i. Profits tend to reach peak levels during this stage. j. Customers have the lowest price sensitivity during this stage. k. Describes the general sales pattern of a product as it passes through distinct life-cycle stages. l. The concern is with product performance and price. m. Actions taken so that life-cycle profits are maximized. n. Emphasizes internal activities that are needed to develop, produce, market, and service products.At the end of 20x1, Mejorar Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry. A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, Mejorar undertook a number of improvement activities such as JIT production, total quality management, and activity-based management. Now, after two years of operation, the president of Mejorar wants some assessment of the achievements. To help provide this assessment, the following information on one product has been gathered: Required: 1. Compute the following measures for 20x1 and 20x3: a. Actual velocity and cycle time b. Percentage of total revenue from new customers (assume one unit per customer) c. Percentage of very satisfied customers (assume each customer purchases one unit) d. Market share e. Percentage change in actual product cost (for 20x3 only) f. Percentage change in days of inventory (for 20x3 only) g. Defective units as a percentage of total units produced h. Total hours of training i. Suggestions per production worker j. Total revenue k. Number of new customers 2. For the measures listed in Requirement 1, list likely strategic objectives, classified according to the four Balance Scorecard perspectives. Assume there is one measure per objective.