MANAGERIAL ACCOUNTING
17th Edition
ISBN: 9781266397820
Author: Garrison
Publisher: MCG
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Question
Chapter 12, Problem 14P
1.
To determine
Speed to market: Speed to market determines the amount of time taken by the companies to introduce or launch new products into the market. The highly competitive market requires companies to be proactive in introducing new products into the market.
The action taken by the research and development department to improve the average amount of time taken to develop the product.
2.
To determine
Elapsed time: Elapsed time is the time consumed from the start of an event to the end of the event. Average elapsed time is the average time gap between the airplane landing and unloading the entire luggage from the airplane.
The performance measure taken to reduce the average elapsed time.
3.
To determine
Late shipment: The shipment of the order will be considered a late shipment if the company is unable to ship the product within the promised date. This would lead to customer dissatisfaction and a bad reputation for the company.
The performance measure to avoid the late shipment of the orders.
4.
To determine
Revenue per employee: This is an efficiency ratio that is used to determine the revenue generated per employee. It helps to determine the efficiency of an employee to generate revenue for the company.
The performance measure to increase the revenue per employee.
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There is often more than one way to improve a performance measure. Unfortunately, some of the actionstaken by managers to make their performance look better may actually harm the organization. For example, suppose the marketing department is held responsible only for increasing the performance measure“total revenues.” Increases in total revenues may be achieved by working harder and smarter, but theycan also usually be achieved by simply cutting prices. The increase in volume from cutting prices almostalways results in greater total revenues; however, it does not always lead to greater total profits. Thosewho design performance measurement systems need to keep in mind that managers who are under pressure to perform may take actions to improve performance measures that have negative consequenceselsewhere.Required:For each of the following situations, describe actions that managers might take to show improvement inthe performance measure but which do not actually lead to improvement in…
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delivery delay
employee turnover
number of defects on the production line
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2.Measures of the balanced scorecard's financial perspective might include all of the following EXCEPT:
operating income
customer satisfaction
gross profit percentage
cost reductions
3.
Which of the following is NOT true of the balanced scorecard?
Different strategies call for different scorecard measures.
Successful implementation requires commitment and leadership from top management.
Only objective measures should be used and subjective measures should be avoided.
Cause and effect linkages are implied by the balanced scorecard, and even though they may not be precise, can and should evolve over time.
Q9 b (i) Your Boss is looking over a Breakeven Chart which you have prepared to portray the Cost Volume Profit relationship of proposed plan of operations. He comments, “The chart only tells me more we sell more profits we make.” What will be your reply? How will you convince your boss that BEP analysis is important for every organization, it gives a way to design production units and identifying profits and losses? Q9 b (ii) Do you ever wonder why these Breakeven Charts are necessary to prepare only for manufacturing businesses not for trading or service business? Give Real life examples for each type of business mentioned here to justify your answer.
Chapter 12 Solutions
MANAGERIAL ACCOUNTING
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - Prob. 1AECh. 12 - Prob. 2AECh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21C
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