Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Chapter 13, Problem 3CE
1.
To determine
Prepare a strategy map for strategy as described by the series of cause-and-effect relationships.
2.
To determine
Explain the manner in which performance measure can act as both a lag variable and a lead indicator.
3.
To determine
Explain the manner in which the result can be attributable to either an implementation problem or an invalid strategy if profits did not increase to the targeted level and state the actions that can be taken for each case.
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East Alabama Medical Center uses nonfinancial performance measures to track the following objectives:
•
Maintain and improve the quality of clinical services.
•
Improve patient service.
•
Enhance employee recruitment and retention.
(a) Link each of these objectives to one of the four balanced scorecard perspectives.
Objective
Perspective
Maintain and improve the quality of clinical services
FinancialLearning & growthInternal business processesCustomer
Improve patient service
Learning & growthInternal business processesFinancialCustomer
Enhance employee recruitment and retention
Learning & growthCustomerInternal business processesFinancial
(b) Identify where on a balanced scorecard you would most likely find the following metrics:
Metric
Perspective
• Patient satisfaction score
Internal business processesFinancialCustomerLearning & growth
• Number of medication errors
Internal business processesLearning…
A sign of the successful implementation of a balanced scorecard is the presence of cause-andeffect relationships. An example of this success for a hotel is meeting the target of:a. decreasing a customer’s check-in time, which causes an increase in the number of implemented employee suggestions. b. increasing employee training hours, which causes employee compensation to increase.c. increasing profit, which causes an increase in employee job satisfaction ratings.d. receiving more 5-star ratings from customers, which causes an increase in profit.
Indicate whether each statement is true or false, and justify your answer.The Dartmouth Atlas research project finds that health care spending varied widely between different American cities in the early 2000s, and that Medicare enrollees in high-spending cities were a lot healthier as a result.
Chapter 13 Solutions
Cornerstones of Cost Management (Cornerstones Series)
Ch. 13 - Describe a strategic-based responsibility...Ch. 13 - What is a Balanced Scorecard?Ch. 13 - What is meant by balanced measures?Ch. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - What are stretch targets? What is their strategic...Ch. 13 - Prob. 7DQCh. 13 - What are the three strategic themes of the...Ch. 13 - Prob. 9DQCh. 13 - Explain what is meant by the long wave and the...
Ch. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - What is a testable strategy?Ch. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Norton Company has the following data for one of...Ch. 13 - Craig, Inc., has provided the following...Ch. 13 - Prob. 3CECh. 13 - The following comment was made by the CEO of a...Ch. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Consider the following list of scorecard measures:...Ch. 13 - Hatch Manufacturing produces multiple machine...Ch. 13 - Computador has a manufacturing plant in Des Moines...Ch. 13 - Refer to Exercise 13.9. Assume that the company...Ch. 13 - The following if-then statements were taken from a...Ch. 13 - Consider the following quality improvement...Ch. 13 - Bannister Company, an electronics firm, buys...Ch. 13 - Prob. 14ECh. 13 - In a balanced scorecard, a key strategic if-then...Ch. 13 - Which of the following objectives would be...Ch. 13 - A manufacturing cell produces 40 units in five...Ch. 13 - Which of the following objectives would likely be...Ch. 13 - Which of the following objectives would likely be...Ch. 13 - Carson Wellington, president of Mallory Plastics,...Ch. 13 - At the end of 20x1, Mejorar Company implemented a...Ch. 13 - Refer to the data in Problem 13.21. 1. Express...Ch. 13 - The following strategic objectives have been...Ch. 13 - Lander Parts, Inc., produces various automobile...Ch. 13 - Auflegger, Inc., manufactures a product that...Ch. 13 - Prob. 26PCh. 13 - At the beginning of the last quarter of 20x1,...
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