Cost accounting study guide
Accounting Final Exam
1.) Five forces included in industry analysis
Competitors.
Potential entrants into the market.
Equivalent products.
Bargaining power of customers. Bargaining power of input suppliers.
2.) The balanced scorecard translates an organization’s mission and strategy into a set of performance measures that provides the framework for implementing its strategy. The balanced scorecard does not focus solely on achieving short-run financial objectives. It also highlights the nonfinancial objectives that an organization must achieve to meet and sustain its financial objectives. The scorecard measures an organization’s performance from four perspectives:
(1) financial, the profits and value created for shareholders;
(2) customer, the success of the company in its target market;
(3) internal business processes, the internal operations that create value for customers; and (4) learning and growth, the people and system capabilities that support operations.
Financial Perspective
Income and investment measures: Economic value added a(EVA®), return on investment
Revenue and cost measures: Revenue growth, revenues from new products, cost reductions in key areas
Income measures: Operating income, gross margin percentage
Customer Perspective
Market share, customer satisfaction, customer-retention percentage, time taken to fulfill customers’ requests, number of customer complaints
Internal-Business-Process Perspective
Innovation Process: Operating capabilities, number of new products or services, new-product development times, and number of new patents
Operations Process: Yield, defect rates, time taken to deliver product to customers, percentage of on-time deliveries, average time taken to respond to orders, setup time, manufacturing downtime
Postsales Service Process: Time taken to replace or repair defective products, hours of customer training for using the product
Learning-and-Growth Perspective
Employee measures: Employee
1.) Five forces included in industry analysis
Competitors.
Potential entrants into the market.
Equivalent products.
Bargaining power of customers. Bargaining power of input suppliers.
2.) The balanced scorecard translates an organization’s mission and strategy into a set of performance measures that provides the framework for implementing its strategy. The balanced scorecard does not focus solely on achieving short-run financial objectives. It also highlights the nonfinancial objectives that an organization must achieve to meet and sustain its financial objectives. The scorecard measures an organization’s performance from four perspectives:
(1) financial, the profits and value created for shareholders;
(2) customer, the success of the company in its target market;
(3) internal business processes, the internal operations that create value for customers; and (4) learning and growth, the people and system capabilities that support operations.
Financial Perspective
Income and investment measures: Economic value added a(EVA®), return on investment
Revenue and cost measures: Revenue growth, revenues from new products, cost reductions in key areas
Income measures: Operating income, gross margin percentage
Customer Perspective
Market share, customer satisfaction, customer-retention percentage, time taken to fulfill customers’ requests, number of customer complaints
Internal-Business-Process Perspective
Innovation Process: Operating capabilities, number of new products or services, new-product development times, and number of new patents
Operations Process: Yield, defect rates, time taken to deliver product to customers, percentage of on-time deliveries, average time taken to respond to orders, setup time, manufacturing downtime
Postsales Service Process: Time taken to replace or repair defective products, hours of customer training for using the product
Learning-and-Growth Perspective
Employee measures: Employee