9 and 11 Use the following information for problems 9 and 10.00.0osomis ysigaib of oli oula zwoils Isbom snilno sriTThe Hayley-Girl Soup Company's operations manager wants to calculate a number of performance statistics for anupcoming meeting using the information shown here.dwRo anoiteaul 21mod bnsbemahmoi alshotutebriomsiboisdBinG bLoq62 cnapowi oCost of goods sold (purchases) = $675,860Current liabilities = $86,904Net sales = $1,450,627%3D%3DthegmoCurrent assets = $327,176%3DRent = $144,00oAverage inventory value = $163,465Annual production = 2,608,184 cans%3DLabor cost = $226,693%3D%3DNet income after taxes = $94,153ews9.g Calculate the profit margin, current ratio, inventory turnover, and purchasing efficiency (given an annual pur-chasing cost goal of $600,000).Calculate the single-factor and multiple-factor productivities.119d Given the information here, calculate the financial performance.not no Isumiv borbn10.no ysnsrs bne abnsd siors lo 910olg s01 be ΣB.altChaptor 2 | Corporate Strategy, Performance, and SustainabilityCSTABLE 2.2 Some Common Operations Performance Measuresnian ei mit odi 2nsso tiewo1g xsbni zidi zAPerformance categoryMeasures• Net profit margin (net income after taxes/net sales)• Current ratio (current assets/current liabilities)• Inventory turnover (cost of goods sold/average inventory value)• Total cost compared to standard or desired cost (purchase, labor, manufacturing,and transportation cost; e.g., purchasing efficiency = actual purchases/purchase goal)FinancialSingle-factor productivity (outputs/labor $; outputs/material $)Multiple-factor productivity (outputs/[labor $ + material $ + energy $])ProductivityNumber of defects per unit, or number of complaints per customer• Cost of poor quality (scrap losses + warranty costs + rework costs + return costs)Average time between product failures mueQuality1020ol amil wolls2mt sdi no (1odsl to tao Product returns per units sold; warranty claimssusDs o onimmsisb ol m Number of work centers/processes using statistical process controles doe) uguoam viivitoubog s209on Number of employees with quality trainingperunits soldNumber of quality awards receivedboucroice o suh o ue broccaPercentage of suppliers with quality certificationsof elovslCustomer service18• Order delivery time accuracy; order quantity accuracy s aid oveworlsyivito• Customer satisfaction scorecpesbet worcu• Number of customer services availableComplaint resolution timeno 15 s olesqmi se1svba ds29 m iviouborg 2v Time needed to change delivery schedules, to change a customer's order t orlNumber of stockouts per periodbordaug isdi boanmob Iedol Completeness of websiteutCSUCsu broAG to po gausnim Inos Isdolg srli ai Jnioq ni suso boog A• Number of "friends" on social websites• Call center capabilitiessuk unu couibsussm bos 1odel 1ot etzobbA wiivitouborq no tongumber of service awards receivednb cosp bcee onvignede seo1 elsnsEthics and sustainabilitygrigoer ylienoilNumber of business ethics and sustainability initiatives adoptedPercentage of purchases from small, minority, or women-owned suppliers1009.1 diiw olie no algo Percentage reduction in greenhouse gas emissions (carbon footprint)Fo ps pereLrieud tsCOU• Number of fair trade products purchased• Percentage of waste recycledg combjexaim sd oels m3 8972m vlivitoubontgoir 29ohn 2svawo Percentage of suppliers that are ISO 14000 certified im enn smo notsidivas bio vilausNumber of ethics/sustainability awards receivedduo 1o boonbongor almost $5 million in profits per hour." These profits were not necessarily the result of something Exx-1 :12

Profit margin is the ratio of net income to the net sales.

Use the following information for problems 9 and 10.0.0os2omle yslgaib ot oli sul9 awolls lobom onilno eriT al The Hayley-Girl Soup Company's operations manager wants to calculate a number of performance statistics for an upcoming meeting using the information shown here. fon to anoitsudau 2modo abnsbnu simoteu Net sales = $1,450,627 Cost of goods sold (purchases) = $675,860 %3D Current assets $327,176 Current liabilities = $86,904 msib Rent = $144,00o Average inventory value = $163,465 %3D Labor cost = $226,693 Annual production = 2,608,184 cans %3D Net income after taxes = $94,153 abnie 9.g Calculate the profit margin, current ratio, inventory turnover, and purchasing efficiency (given an annual pur- tchasing cost goal of $600,000). Calculate the single-factor and multiple-factor productivities. 119d Given the information here, calculate the financial performance. miv boron is no 20 10. Digs

Use the following information for problems 9 and 10.0.0os2omle yslgaib ot oli sul9 awolls lobom onilno eriT al The Hayley-Girl Soup Company's operations manager wants to calculate a number of performance statistics for an upcoming meeting using the information shown here. fon to anoitsudau 2modo abnsbnu simoteu Net sales = $1,450,627 Cost of goods sold (purchases) = $675,860 %3D Current assets $327,176 Current liabilities = $86,904 msib Rent = $144,00o Average inventory value = $163,465 %3D Labor cost = $226,693 Annual production = 2,608,184 cans %3D Net income after taxes = $94,153 abnie 9.g Calculate the profit margin, current ratio, inventory turnover, and purchasing efficiency (given an annual pur- tchasing cost goal of $600,000). Calculate the single-factor and multiple-factor productivities. 119d Given the information here, calculate the financial performance. miv boron is no 20 10. Digs

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 9EB: Classify each of the following performance measures into the balanced scorecard perspective to which...

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Measure Maps Silver Lining Inc. has a balanced scorecard with a strategy map that shows that delivery time and the number of erroneous shipments are expected to affect the company’s ability to satisfy the customer. Further, the strategy map for the balanced scorecard shows that the hours from ordered to delivered affects the percentage of customers who shop again, and the number of erroneous shipments affects the online customer satisfaction rating. The following information is also available: The company’s target hours from ordered to delivered is 20. Every hour over the ordered-to-delivered target results in a 0.5% decrease in the percentage of customers who shop again. The company’s target number of erroneous shipments per year is no more than 70. Every error over the erroneous shipments target results in a 0.5 point decrease in the online customer satisfaction rating and an added future financial loss of $700. The company estimates that for every 1% decrease in the percentage of…
Measure Maps Silver Lining Inc. has a balanced scorecard with a strategy map that shows that delivery time and the number of erroneous shipments are expected to affect the company’s ability to satisfy the customer. Further, the strategy map for the balanced scorecard shows that the hours from ordered to delivered affects the percentage of customers who shop again, and the number of erroneous shipments affects the online customer satisfaction rating. The following information is also available: The company’s target hours from ordered to delivered is 20. Every hour over the ordered-to-delivered target results in a 0.5% decrease in the percentage of customers who shop again. The company’s target number of erroneous shipments per year is no more than 55. Every error over the erroneous shipments target results in a 0.5 point decrease in the online customer satisfaction rating and an added future financial loss of $800. The company estimates that for every 1% decrease in the percentage of…
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.
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.
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 referrals
Open MFG2 and click the Chart sheet tab. The management of Twisp is convinced that the quality of its products is highly dependent on their relative labor costs. Experience has shown that direct labor should account for at least 45% of the total product cost. According to the pie chart that appears on the screen, Twisp did not achieve this goal in 2011. How much should Twisp have spent on direct labor to reach its 45% goal? To find out, try different values for direct labor (cell C8), clicking the Chart sheet tab after each attempt. When you find a direct labor level that increases the direct labor percentage to 45%, enter the answer in the space provided: In 2011, direct labor needed to be ________________. Open MFG3 and click the Chart sheet tab. Did Twisp achieve its 45% goal in 2012? If not, answer the following: In 2012, direct labor needed to be ________________. When the assignment is complete, close the files without saving them again. Worksheet. The MFG2 worksheet presents the companys manufacturing activities for 2011. The company also had the following selling and general activities in 2011: sales of 13,503,000, selling expenses of 2,400,000, and general expenses of 1,200,000. Modify the worksheet to include this information in the Data Section and change the Answer Section so that it is in the form of an income statement. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as MFGT. Hint: Expand the Data Section to include these additional input items alphabetically. Insert a row for sales under the heading in the Answer Section. Add the rest of the income statement information to the bottom of the schedule. You will need to enter formulas for gross profit, all the expenses, and net income. You will also need to change the statement name. Chart. Using the MFG2 file, prepare a single 3-D bar chart to show the dollar amount of materials, labor, and overhead incurred by Twisp in 2011 and 2012. Complete the Chart Data Table and use it as a basis for preparing the chart. Enter all appropriate titles, legends, and formats. Enter your name somewhere on the chart. Save the file again as MFG2. Print the chart.
Hyperflash Inc. has a balanced scorecard that includes the following relationships: Actual results for this month and last month are as follows: Instructions 1.Analyze these data to verify whether they support the expected relationship between the strategic objectives and performance metrics. 2.Identify three possible reasons for any unsupported relationship you identified in part (1). 3.Which of the three possibilities you identified in part (2) is the most likely reason for the unsupported relationship you identified in part (1)?
Pintura Company implemented a quality improvement program and tracked the following for the five years: By cost category as a percentage of sales for the same period of time: Required: 1. Prepare a bar graph that reveals the trend in quality cost as a percentage of sales (time on the horizontal axis and percentages on the vertical). Comment on the message of the graph. 2. Prepare a bar graph for each cost category as a percentage of sales. What does this graph tell you?
Ross Company implemented a quality improvement program and tracked the following for the five years: By cost category as a percentage of sales for the same period of time: Required: 1. Prepare a bar graph that reveals the trend in quality cost as a percentage of sales (time on the horizontal axis and percentages on the vertical). Comment on the message of the graph. 2. Prepare a bar graph for each cost category as a percentage of sales. What does this graph tell you? 3. What if management would like to have the trend in relative distribution of quality costs? Express this as a bar graph and comment on its significance.
a. Consider a company that produces a given article, through a set of operations with the precedence indicated in the table (daily work of 8h). Construct the circulation graph of an in-line deployment (sequential posts) that shows the highest possible efficiency, without considering the single post hypothesis. Operation Op. time Precedences A 1 - B 1,2 A- C 0,6 B D 1,2 C E 0,8 D F 1,4 E G 1,6 F H 0,2 G I 0,6 H J 1,2 I K 1,2 J L 1 K b. Assume that a given improvement proposal involves an investment of $5,000, the hiring of an additional specialized operator paid at $5/hour and an increase in energy consumption by an additional $1/hour. Knowing that the gain per hour with this improvement is $10/hour, determine after what number of working hours the investment becomes viable.
Explaining why companies use performance evaluation systems Financial performance is measured in many ways. Requirements 1. Explain the difference between lag and lead indicators. 2. The following is a list of financial measures. Indicate whether each is a lag or a lead indicator: a. Income statement shows net income of $100,000 b. Listing of next week’s orders of $50,000 c. Trend showing that average hits on the redesigned Web site are increasing at 5% per week d. Price sheet from vendor reflecting that cost per pound of sugar for the next month is $2 e. Contract signed last month with large retail store that guarantees a minimum shelf space for Grandpa’s Overloaded Chocolate Cookies for the next year
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 1.5%. On average, each day above 2 days from ordered to delivered yields a reduction in the customer retention rate of 1%. Each day before 2 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 75%. The company estimates that for every 1% increase or decrease in the customer retention rate, market share…