Managerial Accounting: Creating Value in a Dynamic Business Environment 12th Edition by Ronald Hilto

as follows:
(a) Decision making: Choosing among several convenient locations for the new restaurant. (Should
be high traffic area with sufficient customers of a particular income and age.)
(b) Planning: Developing a cost budget for the food and paper products to be used by quarter for
the next year, along with franchise fees and training needs.
(c) Directing operations: Developing detailed schedules for personnel for the next quarter to provide
counter service in the pizza restaurant.
(d) Controlling: Comparing the actual cost of goods sold in the restaurant with the anticipated cost
for that same time period.
References
Essay Difficulty: 3 Hard Learning Objective: 01-02 Explain four
fundamental management processes that
help organizations attain their goals.
 94.
Award: 1.00 point
State Hospital was once the premier health facility in the Yesville community. Unfortunately, budget
cuts and the loss of strategic personnel due to non-competitive salaries have taken a toll on the
hospital. The hospital decided to align current strategic goals using the Balanced Scorecard
approach. These goals are:
Financial: Balance revenue and Cost to break-even, leading to profit.
Customer: Create new value for customer.
Internal process: Ensure service quality and expand service networks.
Learning and growth: Work toward more employees becoming leaders.
Based on these goals, the hospital developed Objectives for the new balanced scorecard as
follows:
Financial Perspectives: Enhance operational excellence and cost management.
Customer Perspectives: Investigate customer needs.
Internal Process Perspectives: Enhance the combined professional service quality.
Learning and Growth Perspectives: (1) Enhance employee satisfaction; and (2) Slow down the
expansion of operating activity.
Required:
Given these objectives, list at least (5) measurements for each perspective.
Student answers will vary, but here are some examples:
Financial Perspective Measures:
Revenue
Patient-provided income
Revenue per employee
Revenue per patient
Cost ratio, like HR cost or operating cost
 
Customer Perspective Measures:
1. Number of services recognized by customer.
2. Customer satisfaction.
3. Customer complaints.
4. Average patient visits per week.
5. New customers.
Internal Process Perspective Measures:
1. Percentage of employees able to handle direct patient care problem.
2. Emergency room transfer rate.
3. Doctor professional quality.
4. Employee average professional skills.
5. Benchmark measures with similar size facilities and environments.
Learning and Growth Perspective Measures:
1. Employee satisfaction.
2. Employee turnover.
3. Doctor commitment.
4. Number of doctors.
5. Number of employees.
 95.
Award: 1.00 point
6. Human resource cost (training and salaries)
7. Work load.
8. Number of new services.
9. Environment and equipment investments in dollars
10. Trends in number of customers and margins of each service.
References
Essay Difficulty: 3 Hard Learning Objective: 01-03 List and
describe five objectives of managerial
accounting activity.
Magnum Overnight operates an overnight package delivery service that competes with Federal
Express and United Parcel Service (UPS). Top management is considering the use of a balanced
scorecard to evaluate operations.
Required:
A. What is a balanced scorecard and other than customer-satisfaction measures, what are its typical
key components?
B. List four customer-satisfaction measures that Magnum might use to evaluate performance.
A. The balanced scorecard is a business model that helps to assess a firm's competitive position
and ensures that the firm is progressing toward long-term survival. Balanced scorecards differ from
organization to organization; however, in addition to customer-satisfaction measures, most have a
combination of financial measures, internal operating measures, and measures of innovation/growth
and learning.
B. Customer-satisfaction measures could include number of packages delivered, market share,
number of packages lost or damaged, number of customer complaints, average wait time when
calling and scheduling a package pickup, and response time to customer problems.
References
Essay Difficulty: 3 Hard Learning Objective: 01-03 List and
describe five objectives of managerial
accounting activity.
 96.
Award: 1.00 point
Nikki and Bart have been tasked by top management with discussing some of the financial
measures to include in their company’s balanced scorecard. Both are aware that measures that can
be quantified will allow for performance measures that are more effectively captured, leading