Balanced Scorecard, social performance.
Rocky Plain Company provides cable and Internet services in the greater Denver area. There are many competitors that provide similar services. Rocky Plain believes that the key to financial success is to offer a quality service at the lowest cost. Rocky Plain currently spends a significant amount of hours on installation and post-installation support. This is one area that the company has targeted for cost reduction. Rocky Plain's balanced scorecard for 2013 follows.
Required:
1. Was Rocky Plain successful in implementing its strategy in 2013? Explain.
2. Do you agree with Rocky Plain's decision to include measures of developing innovative services (research and development costs) in the internal-business-process perspective of the balanced score-card? Explain briefly.
3. Is there a cause-and-effect linkage between the measures in the internal-business-process perspective and the customer perspective? That is, would you add other measures to the internal-business-process perspective or the customer perspective? Why or why not? Explain briefly.
4. Why do you think Rocky Plain included balanced scorecard measures relating to employee safety and community engagement? How well is the company doing on these measures?
Question 2
Unicorn Company paid the salary of a part-time office assistant, 4,000 . The accountant would record the following journal entry:
a. Cash 4,000
Salary Expense 4,000
b. Salary Expense 4,000
Cash 4,000
c. Salary Payable 4,000
Cash 4,000
d. Prepaid Salary 4,000
Cash 4,000
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