This topic contains a solution. Click here to go to the answer

Author Question: A trial balance checks the equality of debits and credits. Indicate whether the statement is true ... (Read 74 times)

OSWALD

  • Hero Member
  • *****
  • Posts: 580
A trial balance checks the equality of debits and credits.
  Indicate whether the statement is true or false

Question 2

Strategy, balanced scorecard.
 
  Stanmore Corporation makes a special-purpose machine, D4H, used in the textile industry. Stanmore has designed the D4H machine for 2013 to be distinct from its competitors. It has been generally regarded as a superior machine. Stanmore presents the following data for 2012 and 2013.
 
  Stanmore produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2013. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Stanmore can support, not the actual number of customers it serves. Stanmore has 75 customers in 2012 and 80 customers in 2013.
 
  Required:
  1. Is Stanmore's strategy one of product differentiation or cost leadership? Explain briefly.
  2. Describe briefly key measures that you would include in Stanmore's balanced scorecard and the reasons for doing so.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jlaineee

  • Sr. Member
  • ****
  • Posts: 380
Answer to Question 1

T

Answer to Question 2

1. Stanmore Corporation follows a product differentiation strategy in 2011. Stanmore's D4H machine is distinct from its competitors and generally regarded as superior to competitors' products. To succeed, Stanmore must continue to differentiate its product and charge a premium price.

2. Balanced Scorecard measures for 2013 follow:

Financial Perspective
(1) Increase in operating income from charging higher margins, (2) price premium earned on products
These measures indicate whether Stanmore has been able to charge premium prices and achieve operating income increases through product differentiation.

Customer Perspective
(1) Market share in high-end special-purpose textile machines, (2) customer satisfaction, (3) new customers
Stanmore's strategy should result in improvements in these customer measures that help evaluate whether Stanmore's product differentiation strategy is succeeding with its customers. These measures are leading indicators of superior financial performance.

Internal Business Process Perspective
(1) Manufacturing quality and reduced wastage of direct materials, (2) new product features added, (3) order delivery time
Improvements in these measures are expected to result in more distinctive products delivered to its customers and in turn superior financial performance.

Learning and Growth Perspective
(1) Development time for designing new machines, (2) improvements in manufacturing processes, (3) employee education and skill levels, (4) employee satisfaction
Improvements in these measures are likely to improve Stanmore's capabilities to produce distinctive products that have a cause-and-effect relationship with improvements in internal business processes, which in turn lead to customer satisfaction and financial performance.




OSWALD

  • Member
  • Posts: 580
Reply 2 on: Jul 6, 2018
Wow, this really help


Perkypinki

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

For a complete list of videos, visit our video library