COST ACCT
COST ACCT
FD Edition
ISBN: 9781323843284
Author: Horngren
Publisher: PEARSON
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Chapter 23, Problem 23.1Q
To determine

Financial and non-financial performance measures:

Financial measures are those quantitative measure, which has an economical value and can be express in monetary terms. Such as return on investment and residual income, etc.

Non-financial measures are those qualitative measures, which does not have any economical value and cannot be express in monetary terms. Such as customer satisfaction and number of defects, etc.

To state: Examples of financial and non-financial performance measures.

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Explanation of Solution

The examples of financial and non-financial performance measures from different perspective are as follows:

  1. 1. Financial perspective: Net income, return on investment, firm’s stock price, residual income, etc.
  2. 2. Customer perspective: Brand image, customer satisfaction, market share in different geographic locations, number of repeat visits, etc.
  3. 3. Internal-business process perspective: Customer service, waiting time for customer enquiries, cleanliness of rooms, new services like wireless internet, reduction in waste output, energy and water consumption, etc.
  4. 4. Learning-and-growth perspective: Education skills, employees’ satisfaction, hours utilized in employee training, employee turnover, company’s achievement of ISO 14001:2015 certification for environment management, etc.

Hence, the examples of financial and non-financial performance measures are discussed as above.

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Below is a list of various metrics used to measure performance. For each metric, identify the correct balanced scorecard perspective with which the metric is associated.
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Classify the performance measures below into the most likely balanced scorecard perspective towhich it relates: customer (C), internal processes (P), innovation and growth (I), or financial (F). Residual income

Chapter 23 Solutions

COST ACCT

Ch. 23 - Managers should be rewarded only on the basis of...Ch. 23 - Explain the role of benchmarking in evaluating...Ch. 23 - Explain the incentive problems that can arise when...Ch. 23 - Prob. 23.14QCh. 23 - Prob. 23.15QCh. 23 - During the current year, a strategic business unit...Ch. 23 - Assuming an increase in price levels over time,...Ch. 23 - If ROI Is used to evaluate a managers performance...Ch. 23 - The Long Haul Trucking Company is developing...Ch. 23 - ABC Inc. desires to maintain a capital structure...Ch. 23 - ROI, comparisons of three companies. (CMA,...Ch. 23 - Prob. 23.22ECh. 23 - ROI and RI. (D. Kleespie, adapted) The Sports...Ch. 23 - ROI and RI with manufacturing costs. Excellent...Ch. 23 - ROI, RI, EVA. Hamilton Corp. is a reinsurance and...Ch. 23 - Goal incongruence and ROI. Comfy Corporation...Ch. 23 - ROI, RI, EVA. Performance Auto Company operates a...Ch. 23 - Capital budgeting, RI. Ryan Alcoa, a new associate...Ch. 23 - Prob. 23.29ECh. 23 - ROI, RI, EVA, and performance evaluation. Cora...Ch. 23 - Prob. 23.31ECh. 23 - Prob. 23.32ECh. 23 - ROI performance measures based on historical cost...Ch. 23 - ROI, measurement alternatives for performance...Ch. 23 - Multinational firms, differing risk, comparison of...Ch. 23 - ROI, Rl, DuPont method, investment decisions,...Ch. 23 - Division managers compensation, levers of control...Ch. 23 - Executive compensation, balanced scorecard. Acme...Ch. 23 - Financial and nonfinancial performance measures,...Ch. 23 - Prob. 23.40PCh. 23 - Prob. 23.41PCh. 23 - RI, EVA, measurement alternatives, goal...
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