For each of the following managerial accounting techniques, read the definition provided and then provide an example of a personal situation that would benefit from the use of this technique.

(d)Balanced scorecard (page 513) – Mod06 – Ch11

 

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Balanced Scorecard 513 Group, the owner of 300 dealerships, rewards executives for meeting employee retention targets. Illustration 11-28 lists some key nonfinancial measures used in various industries. Industry Measure Capacky uiliation of planta Averge age of key asets Impact of es Brandloyaty statisties Automobiles Market profile of customer end produeta Number of new products. Employee stock ownership percentages Number of scientita and technicians used in RAD Computer Systema Customer satistaction daa Factors affecting customer product selection Number of patents and trademarks held. Customer brand awareness Chemicals Regional Banks Number of ATM by state Number of products uned by average customer. Percentage of customer service cali handled by Interaetive voice response unita Personnel cost per employee Credit card retention rates le f ng g lhng Pier, Can. AS Ilustration 11-28 Most companies recognize that both financial and nonfinancial measures can Nonfinancial measures Used provide useful insights into what is happening in the company As a result, many in varioun industies companies now use a broad-based measurement approach, called the balanced scorecard, to evaluate performance. The balanced scorecard incorporates financial and nonfinancial mesmures in an integrated system that links perfor- mance measurement with a company's strategic goals. Nearly 50% of the largest companies in the United States, including Unilever, Chase, and Wal-Mart Stores Inc, are using the balanced scorecard approach. The balanced scorecard evaluates company performance from a series of "perspectives" The four most commonly employed perspectives are as follows. 1. The financial perspective is the most traditional view of the company It employs financial measures of performance used by most firms 2. The customer perspective evaluates the company from the viewpoint of those people who buy its products or services. This view compares the com pany to competitors in terms of price, quality product innovation, customer service, and other dimensiona 3. The Internal process perspective evaluates the internal operating processes critical to success. All critical aspects of the value chaininchuding product development, production, delivery, and afhersale serviceare evaluated to eure that the company ia operating effectively and efficiently 4. The learning and growth perspective evaluates how well the company develops and retains ita employes This would inclade evaluation of such things employee skilla, employee satisfaction. training programs, and information dissination dm 514 11Standard Costa and Balanced Scorecard pepect, the halanced and identifes objectives that Balanced Scorecard 513 Group, the owner of 300 dealerships, rewards executives for meeting employee retention targets. Illustration 11-28 lists some key nonfinancial measures used in various industries. Industry Measure Capacky uiliation of planta Averge age of key asets Impact of es Brandloyaty statisties Automobiles Market profile of customer end produeta Number of new products. Employee stock ownership percentages Number of scientita and technicians used in RAD Computer Systema Customer satistaction daa Factors affecting customer product selection Number of patents and trademarks held. Customer brand awareness Chemicals Regional Banks Number of ATM by state Number of products uned by average customer. Percentage of customer service cali handled by Interaetive voice response unita Personnel cost per employee Credit card retention rates le f ng g lhng Pier, Can. AS Ilustration 11-28 Most companies recognize that both financial and nonfinancial measures can Nonfinancial measures Used provide useful insights into what is happening in the company As a result, many in varioun industies companies now use a broad-based measurement approach, called the balanced scorecard, to evaluate performance. The balanced scorecard incorporates financial and nonfinancial mesmures in an integrated system that links perfor- mance measurement with a company's strategic goals. Nearly 50% of the largest companies in the United States, including Unilever, Chase, and Wal-Mart Stores Inc, are using the balanced scorecard approach. The balanced scorecard evaluates company performance from a series of "perspectives" The four most commonly employed perspectives are as follows. 1. The financial perspective is the most traditional view of the company It employs financial measures of performance used by most firms 2. The customer perspective evaluates the company from the viewpoint of those people who buy its products or services. This view compares the com pany to competitors in terms of price, quality product innovation, customer service, and other dimensiona 3. The Internal process perspective evaluates the internal operating processes critical to success. All critical aspects of the value chaininchuding product development, production, delivery, and afhersale serviceare evaluated to eure that the company ia operating effectively and efficiently 4. The learning and growth perspective evaluates how well the company develops and retains ita employes This would inclade evaluation of such things employee skilla, employee satisfaction. training programs, and information dissination dm 514 11Standard Costa and Balanced Scorecard pepect, the halanced and identifes objectives that

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The Following Balanced scorecard is applied to a personal situation Category Strategic Priorities Targets Activities Financial Be out of debt Repayment of loans Based on the current budget this will b... View the full answer