Strategic-based responsibility accounting system Show translates the strategy of an organization into operational objectives and measures a strategic based performance management system that typically identifies objectives and measures for four different perspectives (1) Financial (2) Customer (3) process and (4) Learning and growth outcome measures- measures of results from past efforts (eg. customer profitability) Lead measures (performance drivers) factors that drive future performance (eg. hours of employee training) measures that are less quantifiable and more judgmental in nature (eg. employee capabilities) measures that can be readily quantified and verified (eg. market share) those measures expected in monetary terms measures that use non monetary units (eg. cost per unit and number of dissatisfied customers) measures that relate to customers versus shareholders (eg. customer satisfaction and ROI) measures that relate to the processes and capabilities that create value for customers and shareholders (eg. process efficiency and employee satisfaction) targets that are set at levels that, if achieved, will transform the organization within a period of three to five years is identifying and defining management's desired relationships among the four perspectives this means specifying objectives, measures, targets, and initiatives for each perspecive establishes long and short-term financial performance objectives expected from the organization's strategy and simultaneously describes the economic consequences of actions taken in the other three perspectives defines the customer and market segments in which the business unit will compete and describes the way that value is created for customers Core objectives and measures objectives that are common across all organizations five key objectives 1) increase market share 2) increase customer retention 3) increase customer acquisition 4) increase customer satisfaction 5) increase customer profitability the difference between realization and sacrifice. realization is what the customer receives and sacrifice is what is given up costs incurred by the customer after purchase internal business perspective describes the internal processes needed to provide value for customers and owners Made up of 3 processes: the innovation process, the operations process, and the postsales process anticipates the emerging and potential needs of customers and creates new products and services to satisfy those needs produces and delivers existing products and services to customers post sales service process provides critical and responsive services to customers after the product or service has been delivered Cycle time (manufacturing) the length of time it takes to produce to unit of output from the time materials are received until the good is delivered to finished good inventory ( TIME/UNITS PRODUCED) the number of units of output that can be produced in a given period of time (UNITS PRODUCED/TIME) Manufacturing Cycle Efficiency (MCE) Processing Time/(Processing Time + Move Time + Inspection Time + Waiting Time + Other non-value added time) Learning and growth (infrastructure) perspective perspective that defines the capabilities that an organization needs to create long-term growth and improvement, has 3 major enabling factors: 1) employee capabilities 2) information systems 3) employee attitudes can be defined as a set of linked objectives aimed at an overall goal this occurs whenever managers receive information about both the effectiveness of strategy implementation and the validity of the assumptions underlying the strategy this only emphasizes the effectiveness of implementation a useful tool that graphically illustrates the cause-effect relationship and connects the Balanced Scorecard strategy with an organization's operating activities This preview shows page 1 - 2 out of 4 pages. CHAPTER 13 MULTIPLE CHOICE33. Which of the following responsibility accounting systems translates the strategy of an organizationinto operational objectives and measures? a. Financial-based responsibility accounting b. Operational-based responsibility accounting c. Activity-based responsibility accounting d. Strategic-basedresponsibility accounting ANSWER: d 34. Which of the following is NOT true about activity-based responsibility accounting? a. The emphasischanges from cost reduction through change to cost control. b. The emphasis includes financial results aswell as how things are done. c. Responsibility moves from one dimension to two dimensions. d. It movesfrom a control system to a performance management system. ANSWER: a36. Which of the following is true about a strategic-based responsibility accounting system? a. It fails toconnect with an organization's overall mission and strategy. b. It expands the number of responsibilitydimensions from one to two. c. It does not work for firms operating in dynamic environments. d. It cantake the form of a Balanced Scorecard. ANSWER: d38. Which of the following is NOT an advantage of strategic-based responsibility accounting? a. Itincludes perspectives that serve as a source of competitive advantage. b. Responsibility is centralizedwithin the organization. c. Change efforts are directed by the mission and strategy. d. All are advantagesof strategic-based responsibility accounting.ANSWER: b40. The most common strategic-based performance management system is a. variance analysis withstandard costs as benchmarks. b. the balanced scorecard. c. financial budgets. d. all of the above.ANSWER: b41. Which of the following is true of a Balanced Scorecard? a. It fails to connect with an organization'soverall mission and strategy. b. It is the most common form of an activity-based responsibility accountingsystem. c. It does not work for firms operating in dynamic environments. d. It is a strategic-basedperformance management system that identifies objectives and measures for four differentperspectives. ANSWER: d42. Lead measures are critical to strategy because a. they are based on actual activity. b. they are anindependent part of the system. c. there should be a causal linkage with strategy. d. they are outcomemeasures. ANSWER: c Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 4 pages? Upload your study docs or become a Course Hero member to access this document Tags following responsibility accounting systems Which of the following responsibility accounting systems translates the strategy of an organization into operational?A strategy-based responsibility accounting system translates the strategy of the organization into operational objectives and measures. The Balanced Scorecard is a strategic-based performance management system that typically identifies objectives and measures for four different perspectives.
Which system is the responsibility accounting?Responsibility Accounting is a system of accounting where specific individuals are made responsible for accounting in particular areas of cost control. In this accounting system, responsibility is assigned based on knowledge and skills. If the costs increase, the person assigned is held accountable and answerable.
How does strategicAn activity-based responsibility accounting system fails to connect with an organization's overall mission and strategy, whereas a strategic-based responsibility accounting system translates the strategy of an organization into operational objectives and measures.
Which of the following is the basic purpose of a responsibility accounting?The basic purpose of a responsibility accounting system is to motivate management to perform in a manner consistent with overall company objectives. The assignment of responsibility implies that some revenues and costs can be changed through effective management.
|
Which of the following responsibility accounting system translates the strategy of an organization into operational objectives and measures?
zusammenhängende Posts
Urheberrechte © © 2024 toptenid.com Inc.
