Solutions Manual For

Solutions Manual For Managerial Accounting, 16 th

Edition By Carl Warren, Jefferson Jones, William Tayler (All Chapters 15-28, 100% Original Verified, A+ Grade)

All Chapters Arranged Reverse:

28-15

Managerial Part: Chapter 15-28

This is The Original Solutions Manual For 16 th Edition, All other Files in The Market are Fake/Old/Wrong Edition. 1 / 4

1.A strategic performance measurement system defines and links strategic objectives to the performance metrics that a company uses. This system helps a company to align metrics with overall goals and objectives (both financial and nonfinancial) and thereby measure performance relating to company strategy. The balanced scorecard is the most well-known example of a strategic performance management system.

2.Leading indicators are metrics that indicate something about performance in the future. For example, poor customer satisfaction may indicate that sales will be down next month.Lagging indicators are metrics that indicate something about performance that has already happened.For example, this month’s actual sales is a lagging indicator of last month’s customer satisfaction.

3.The purpose of the performance perspectives is primarily to help management look beyond the typical financial measures of performance, such as sales and profits, encouraging a more balanced view of performance. Performance perspectives also help to organize the balanced scorecard into types of performance.

4.Strategic objectives define the purpose of an action taken within the company. They are essentially subcomponents of the organization’s overall mission statement or strategy. Strategic initiatives are action plans that management implements to achieve the strategic objectives. In other words, strategic objectives are different goals a company wants to achieve, and strategic initiatives are the plans a company makes to achieve those goals.

5.Strategy maps show the expected cause-and-effect relationships among strategic objectives. For example, a strategy map may illustrate that fulfilling the strategic objective to reduce delivery times will cause customers to be more satisfied, contributing to a separate strategic objective to please the customer. Strategy maps add value to the balanced scorecard by illustrating how each strategic objective contributes to the overall mission or strategy of the company.

6.Some objectives on a company-wide scorecard may not specifically relate well to the company’s specific departments (e.g., Shipping & Receiving, Sales, Production, etc.). However, to be effective, balanced scorecards should be relevant for each level of management in the company. Scorecard cascading accomplishes this purpose by using multiple scorecards that are divided up into smaller, division- and job-specific scorecards.

7.People subject to motivated reasoning tend to ignore bad news, rely too heavily on good news, stop gathering information when results look good, continue searching for good news when things look bad, and interpret ambiguous news as good news.

8.A company using scorecard cascading will have unique scorecards for each division or department of the company and for each level of management. This makes it difficult for top-level managers to compare the performance of employees or managers in different divisions, because their performance will likely be measured by different metrics. This will tempt top-level managers to place more weight on performance metrics that these employees have in common and possibly ignore performance metrics unique to each employee. This constitutes common measures bias.

CHAPTER 28 (FIN MAN); CHAPTER 14 (MAN)

THE BALANCED SCORECARD AND

DISCUSSION QUESTIONS

CORPORATE SOCIAL RESPONSIBILITY

28-1 © 2023 Cengage ® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 / 4

CHAPTER 28 (FIN MAN); CHAPTER 14 (MAN) The Balanced Scorecard and Corporate Social Responsibility DISCUSSION QUESTIONS (Concluded) 9.Corporate social responsibility is the general term for the efforts of companies to take responsibility for the impact their operations have on society and to improve social well-being within and outside the firm. Sustainability efforts are corporate social responsibility activities that involve ensuring the ability to meet current needs without compromising the ability of future generations to meet their needs (e.g., efforts to protect the environment).

10.Companies can use the balanced scorecard to address CSR objectives in a variety of ways. One way is to include CSR objectives and activities in a separate CSR performance perspective.Alternatively, companies can integrate CSR strategic objectives into the four perspectives of the balanced scorecard, creating what is called a sustainability balanced scorecard.28-2 © 2023 Cengage ® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 / 4

CHAPTER 28 (FIN MAN); CHAPTER 14 (MAN)  The Balanced Scorecard and Corporate Social Responsibility

BE 28–1 (FIN MAN); BE 14–1 (MAN)

Leading indicators:

Employee turnover Average shipping time Median training hours per employee

Lagging indicators:

Number of returning customers Total sales Market share

BE 28–2 (FIN MAN); BE 14–2 (MAN)

Performance Perspective Increase profits Financial Customer • Number of new customers share • Percentage of sales from new customers • Number of leads Internal • Average production time per product efficiency processes• Total costs of production • Average cost of production per product Attract top Learning • Percentage of entry-level hires with talent and growthmaster’s degree • Percentage of entry-level hires from top 10 colleges • Percentage of interns from top 10 colleges who become full-time hires

BE 28–3 (FIN MAN); BE 14–3 (MAN)

Sales$ 230,000 Cost of goods sold (150,000) Depreciation expense(30,000) Other expense(20,000) Net income$ 30,000

Cost of shipping error: $3,000 + $2,000 = $5,000

Break-even shipping errors: $30,000 ÷ $5,000 = 6

Improve production Remember: A leading indicator can be any metric where performance is predictive of performance in another metric. Similarly, a lagging indicator can be any metric where performance is predicted by performance in another metric.

BASIC EXERCISES

Strategic Objective Increase market Possible Performance Metrics (Not an exhaustive list) • Market share • Operating profit • Gross profit 28-3 © 2023 Cengage ® . May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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