Business
Engineering
Math
Science
Social Science
Carson Wellington, president of Mallory Plastics, was considering a report sent to him by Emily Sorensen, vice president of operations. The report was a summary of the progress made by an activity-based management system that was implemented three years ago. Significant progress had indeed been realized. At the conclusion of the report, Emily urged Carson to consider the adoption of the Balanced Scorecard as a logical next step in the company’s efforts to establish itself as a leader in its industry. Emily clearly was impressed by the Balanced Scorecard and intrigued by the possibility that the change would enhance the overall competitiveness of Mallory. She requested a meeting of the executive committee to explain the similarities and differences between the two approaches. Carson agreed to schedule the meeting but asked Emily to prepare a memo in advance, listing the most important similarities and differences between the two approaches to responsibility accounting. Required: Prepare the memo requested by Carson.
Cornerstones of Cost Management (C...
Solutions
Cornerstones of Cost Management (C...
Carson Wellington, president of Mallory Plastics, was considering a report sent to him by Emily Sorensen, vice president of operations. The report was a summary of the progress made by an activity-based management system that was implemented three years ago. Significant progress had indeed been realized. At the conclusion of the report, Emily urged Carson to consider the adoption of the Balanced Scorecard as a logical next step in the company’s efforts to establish itself as a leader in its industry. Emily clearly was impressed by the Balanced Scorecard and intrigued by the possibility that the change would enhance the overall competitiveness of Mallory. She requested a meeting of the executive committee to explain the similarities and differences between the two approaches. Carson agreed to schedule the meeting but asked Emily to prepare a memo in advance, listing the most important similarities and differences between the two approaches to responsibility accounting.
Required:
Prepare the memo requested by Carson.
Prepare the memo requested by Person C.
Explanation of Solution
Activity-Based responsibility accounting: Activity based responsibility accounting indicates a vital change regarding the manner, in which responsibility is assigned, measured and evaluated.
Strategic-based responsibility accounting: Strategic-based performance management system translates the strategy of an entity into “operational objectives and measures”.
Memo
From
Student A
To
The president
Company M
Re: Comparison of Activity-and strategic-based responsibility accounting.
Dear Sir,
As suggested, I am giving a list of some of the main “similarities and differences” among “activity and strategic-based responsibility accounting” in advance.
Similarities:
- Both of the approaches give emphasis to support and motivate continuous improvement.
- Both of the approaches use “financial and nonfinancial measures”
- Both of the approaches give importance to the process responsibility and financial responsibility.
- Both of the approaches are based on rewards on “multidimensional performance” and lets “gainsharing” as a probable incentive structure...
Chapter 13 Solutions
Additional Business Textbook Solutions
Management, Loose-Leaf Version
MKTG 12:STUDENT ED.-TEXT
Principles of Macroeconomics (MindTap Course List)
Accounting Information Systems
Macroeconomics
Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Statistics for Business & Economics, Revised (MindTap Course List)
Corporate Financial Accounting
Financial Accounting
Accounting (Text Only)
Principles of Microeconomics (MindTap Course List)
Intermediate Accounting: Reporting And Analysis
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Exploring Economics
Survey of Accounting (Accounting I)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Economics For Today
STATISTICS F/BUSINESS+ECONOMICS-TEXT
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Financial Accounting
Accounting Information Systems
Fundamentals of Financial Management (MindTap Course List)
Corporate Financial Accounting
Fundamentals of Financial Management (MindTap Course List)
College Accounting (Book Only): A Career Approach
Financial And Managerial Accounting
Financial & Managerial Accounting
Pkg Acc Infor Systems MS VISIO CD
Purchasing and Supply Chain Management
Foundations of Business (MindTap Course List)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Essentials of Business Communication (MindTap Course List)
College Accounting, Chapters 1-27
Managerial Accounting: The Cornerstone of Business Decision-Making
Practical Management Science
College Accounting (Book Only): A Career Approach
Essentials of Economics (MindTap Course List)
Economics (MindTap Course List)
Financial & Managerial Accounting
Brief Principles of Macroeconomics (MindTap Course List)
Principles of Economics (MindTap Course List)
Contemporary Marketing
Managerial Accounting
Cornerstones of Financial Accounting
Microeconomics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
Micro Economics For Today
MACROECONOMICS FOR TODAY
Understanding Management (MindTap Course List)
