CengageNOWv2, 1 term Printed Access Card for Warren's Survey of Accounting, 8th
8th Edition
ISBN: 9781305961982
Author: Carl Warren
Publisher: Cengage Learning
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Textbook Question
Chapter 14, Problem 14.4MBA
Balanced scorecard
Costco Wholesale Corporation (COST) operates membership warehouses throughout the United States and the world. Fifteen Costco metrics and recent initiatives are as follows
1. Increasing same store sales
2. Improving safety procedures for warehouse prepared foods
3. Reducing the number of product returns
4. Researching consumer preferences
5. Increasing the number of warehouses with gas pumps
6. Offering training programs for all new employees
7. Offering awards for employees with more the five years of service
8. Improving Costco online consumer experience
9. Increasing gross profit percentage
10. Changing containers from square to round to increase the number of containers that can be shipped on a pallet
11. Developing a company-owned coffee roasting operation
12. Using floor-ready packaging from suppliers
13. Reducing warehouse energy usage for floor lighting
14. Increasing the use of automation to increase efficiencies
15. Increasing the average revenue per member
Assign each item to one of the four dimensions of the balanced scorecard
1.learning and innovation
2.customer
3-internal process 4.financial
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Balanced scorecard Several years ago. United Parcel Service (UPS) believed that the Internet was going to change the parcel delivery market and would require UPS to become a more nimble and customer-focused organization. As a result, UPS replaced its old measurement system,which was 90% oriented toward financial performance, with a balanced scorecard. The scorecard emphasized four "point of arrival" measures, which were 1.Customer satisfaction index—a measure of customer satisfaction. 2.Employee relations index—a measure of employee sentiment and morale. 3.Competitive position—delivery performance relative to competition. Time in transit—the time from order entry to deliver)'.a.Why did UPS introduce a balanced scorecard and nonfinancial measures in its newperformance measurement system? b.Why do you think UPS included a factor measuring employee sentiment?
Balanced scorecardSeveral years ago. United Parcel Service (UPS) believed that the Internet was going tochange the parcel delivery market and would require UPS to become a more nimble andcustomer-focused organization. As a result, UPS replaced its old measurement system,which was 90% oriented toward financial performance, with a balanced scorecard. Thescorecard emphasized four "point of arrival" measures, which were1.Customer satisfaction index—a measure of customer satisfaction.2.Employee relations index—a measure of employee sentiment and morale. 3.Competitiveposition—delivery performance relative to competition.Time in transit—the time from order entry to deliver)'.a.Why did UPS introduce a balanced scorecard and nonfinancial measures in its newperformance measurement system? b.Why do you think UPS included a factor measuring employee sentiment?
The balanced scorecard for a service company
American Express Company is a major financial services company noted for its American Express® card. Some of the performance measures used by the company on its balanced scorecard are listed below.
For each measure, identify whether the measure best fits the learning and growth, internal processes, customer, or financial performance perspective of the balanced scorecard.
Performance Metric
Performance Perspective
Average card member spending
Number of Internet features
Cards in force
Number of merchant signings
Earnings growth
Number of new card launches
Hours of credit consultant training
Return on equity
Investment in information technology
Revenue growth
Number of card choices
Chapter 14 Solutions
CengageNOWv2, 1 term Printed Access Card for Warren's Survey of Accounting, 8th
Ch. 14 - When the manager has the responsibility and...Ch. 14 - The Accounts Payable Department has expenses of...Ch. 14 - Division A of Kern Co. has sales of $350,000, cost...Ch. 14 - Division L of Liddy Co. has a return on investment...Ch. 14 - Which approach to transfer pricing uses the price...Ch. 14 - Prob. 1CDQCh. 14 - Prob. 2CDQCh. 14 - Prob. 3CDQCh. 14 - Prob. 4CDQCh. 14 - Weyerhaeuser developed a system that assigns...
Ch. 14 - What is the major shortcoming of using operating...Ch. 14 - Prob. 7CDQCh. 14 - In a decentralized company in which the divisions...Ch. 14 - Prob. 9CDQCh. 14 - Prob. 10CDQCh. 14 - Prob. 11CDQCh. 14 - Prob. 12CDQCh. 14 - Why would standard cost be a more appropriate...Ch. 14 - Prob. 14CDQCh. 14 - Budget performance reports for cost centers...Ch. 14 - Divisional income statements The following data...Ch. 14 - Prob. 14.3ECh. 14 - Prob. 14.4ECh. 14 - Service department charges In divisional income...Ch. 14 - Service department charges and activity bases...Ch. 14 - Divisional income statements with service...Ch. 14 - Corrections to service department charges Panda...Ch. 14 - Profit center responsibility reporting On-Demand...Ch. 14 - Prob. 14.10ECh. 14 - Prob. 14.11ECh. 14 - Prob. 14.12ECh. 14 - Profit margin, investment turnover, and return on...Ch. 14 - Prob. 14.14ECh. 14 - Determining missing items in return on investment...Ch. 14 - Prob. 14.16ECh. 14 - Prob. 14.17ECh. 14 - Prob. 14.18ECh. 14 - Budget performance report for a cost center Sneed...Ch. 14 - Budget performance report for a cost center Sneed...Ch. 14 - Profit center responsibility reporting A-One...Ch. 14 - Profit center responsibility reporting A-One...Ch. 14 - Profit center responsibility reporting A-One...Ch. 14 - Prob. 14.3.1PCh. 14 - Divisional income statements and return on...Ch. 14 - Prob. 14.3.3PCh. 14 - Prob. 14.4.1PCh. 14 - Prob. 14.4.2PCh. 14 - Prob. 14.4.3PCh. 14 - Effect of proposals on divisional performance A...Ch. 14 - Prob. 14.4.5PCh. 14 - Prob. 14.5.1PCh. 14 - Prob. 14.5.2PCh. 14 - Prob. 14.5.3PCh. 14 - Prob. 14.5.4PCh. 14 - Prob. 14.6.1PCh. 14 - Prob. 14.6.2PCh. 14 - Prob. 14.6.3PCh. 14 - Prob. 14.6.4PCh. 14 - Prob. 14.6.5PCh. 14 - Balanced scorecard American Express Company (AXP)...Ch. 14 - Balanced scorecard Several years ago. United...Ch. 14 - Balanced scorecard Delta Air Lines, Inc. (DAL)...Ch. 14 - Balanced scorecard Costco Wholesale Corporation...Ch. 14 - Prob. 14.5MBACh. 14 - Prob. 14.1CCh. 14 - Prob. 14.2CCh. 14 - Prob. 14.3.1CCh. 14 - Prob. 14.3.2CCh. 14 - Prob. 14.3.3CCh. 14 - Prob. 14.3.4CCh. 14 - Prob. 14.4.1CCh. 14 - Prob. 14.4.2CCh. 14 - Prob. 14.4.3CCh. 14 - Prob. 14.4.4CCh. 14 - Prob. 14.5.1CCh. 14 - Prob. 14.5.2CCh. 14 - Prob. 14.5.3CCh. 14 - Prob. 14.5.4CCh. 14 - Prob. 14.5.5CCh. 14 - Prob. 14.5.6C
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