Deck 25: Rewarding Business Performance

Question 1

The following information regarding Greenwich Company is available:
Compute the answers for items A-D.

Answer 1

A) $1,512,000 − $882,000 − $252,000 = $378,000
B) $1,512,000 ÷ 40% = $3,780,000
C) $378,000 ÷ $3,780,000 = 10%
D) $378,000 ÷ $1,512,000 = 25%

Question 2

The following information regarding Baron Company is available:
Compute the answers for items A-D.

Answer 2

A) $264,000 − $99,000 − $66,000 = $99,000
B) $66,000 ÷ $660,000 = 10%
C) $66,000 ÷ $264,000 = 25%
D) $264,000 ÷ $660,000 = 40%

Question 3

State the four performance lenses in a balanced scorecard and briefly describe each of them.

Answer 3

1) Financial perspective-This lens helps employees consider the impact of strategic decisions on the traditional financial measures by which shareholders and creditors evaluate business performance.
2) Customer perspective-In this lens, employees examine how the organization's strategies, products, and services add value to the customer.
3) Learning and growth perspective-This lens focuses on the people, information systems, and organizational procedures in place for organizational learning and growth.
4) Business process perspective-This lens focuses on internal business processes and external business relations with suppliers and distributors.