Strategy, balanced scorecard, service company.
Southland Corporation is a small information- systems consulting firm that specializes in helping companies implement standard sales-management software. The market for Southland's services is very competitive. To compete successfully, Southland must deliver quality service at a low cost. Southland presents the following data for 2012 and 2013.
Software-implementation labor-hour costs are variable costs. Software-implementation support costs for each year depend on the software-implementation support capacity Southland chooses to maintain each year (that is, the number of jobs it can do each year). Software-implementation support costs do not vary with the actual number of jobs done that year.
Required:
1. Is Southland Corporation's strategy one of product differentiation or cost leadership? Explain briefly.
2. Describe key measures you would include in Southland's balanced scorecard and your reasons for doing so.
Question 2
Classify each of the following items as to whether they would appear on a balance sheet (BS), income statement (IS), or neither (N). Accounts Payable Accounts Receivable Advertising Expense Cash Equipment Income from Tours Increase in Capital Investment during month J. Collins, Capital J. Collins, Drawing Prepaid Insurance Wages Expense
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