Santana Rey’s two departments, computer consulting services and computer workstation furniture manufacturing, have each been profitable for Business Solutions. Santana has heard of the balanced scorecard and wants you to provide details on how it could be used to measure performance of her departments. 1. Explain the four performance perspectives included in a balanced scorecard. 2. For each of the four performance perspectives included in a balanced scorecard, provide examples of measures Santana could use to measure performance of her departments.
Step 11 of 7
1. The first important thing to understand first is the definition of balanced scorecard. Balanced scorecard is defined as a strategic, integrated and holistic approach to measuring an organization's performance. A balanced scorecard offers four perspectives: View from the Top or Financial (what are our objectives?), Customer Perspective (are we meeting customer needs?) Internal Processes Perspective (do processes support achieving those goals?) Learning and Growth Perspective (Do we have a learning culture?). All four of these perspectives need to be aligned with the company's strategic plan in order for it to work well because otherwise they can't measure success against their stated targets. And each perspective has different measures that will help you understand how your business is performing - if one area isn't working as well as expected, what adjustments could be made?
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Prepare general journal entries for the following transactions of a new company called Pose-for-Pics. Use the following (partial) chart of accounts: Cash; Office Supplies; Prepaid Insurance; Photography Equipment; Common Stock; Photography Fees Earned; and Utilities Expense.
|1||Madison Harris, the owner, invested cash and of photography equipment in the company|
|2||The company paid cash for an insurance policy covering the next 24 months.|
|5||The company purchased office supplies for cash.|
|20||The company received cash in photography fees earned.|
|31||The company paid $675 cash for August utilities.|
Laker Company reported the following January purchases and sales data for its only product.
The company uses a perpetual inventory system. Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO. (Round per unit costs and inventory amounts to cents.) For specific identification, ending inventory consists of 200 units, where 180 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.