Measure Maps 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 2 shipping errors per month reduces the customer retention rate by 2.5%. On average, each day above 2 days from ordered to delivered yields a reduction in the customer retention rate of 2%. Each day before 2 days from order to delivery yields an increase in the customer retention rate of 2%, on average. Rizzo Goal Inc.’s current customer retention rate is 70%. The company estimates that for every 2% increase or decrease in the customer retention rate, market share changes 1% in the same direction. Rizzo Goal Inc.’s current market share is 22.4%. Ignoring any other factors, if the company has 4 shipping errors this month and an average of 2.5 days from ordered to delivered. a. Determine the new customer retention rate. Round your answer to one decimal place. ______________ b. Determine the new market share that Rizzo Goal Inc. expects to have. Round your answer to one decimal place. _______________
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Measure Maps
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 2 shipping errors per month reduces the customer retention rate by 2.5%.
- On average, each day above 2 days from ordered to delivered yields a reduction in the customer retention rate of 2%.
- Each day before 2 days from order to delivery yields an increase in the customer retention rate of 2%, on average.
- Rizzo Goal Inc.’s current customer retention rate is 70%.
- The company estimates that for every 2% increase or decrease in the customer retention rate, market share changes 1% in the same direction.
- Rizzo Goal Inc.’s current market share is 22.4%.
Ignoring any other factors, if the company has 4 shipping errors this month and an average of 2.5 days from ordered to delivered.
a. Determine the new customer retention rate. Round your answer to one decimal place.
______________
b. Determine the new market share that Rizzo Goal Inc. expects to have. Round your answer to one decimal place.
_______________
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