COST ACCOUNTING
BALANCED SCORECARDS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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inefficiencies and waste associated with non-value-added costs
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their unused capacity.
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costs associated with both direct and indirect labor.
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costs through using information technology.
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Detailed explanation-1: -Downsizing discretionary costs is easier than downsizing engineered costs. False-Downsizing discretionary costs is more difficult because the unused capacity of discretionary costs is generally unknown. Downsizing often means eliminating jobs, which can have an adverse effect on employee moral.
Detailed explanation-2: -Four generic business-level strategies emerge from these decisions: (1) cost leadership, (2) differentiation, (3) focused cost leadership, and (4) focused differentiation. In rare cases, firms are able to offer both low prices and unique features that customers find desirable.
Detailed explanation-3: -Business Process Re-engineering (BPR) is the radical redesign of business processes to achieve dramatic improvements in critical aspects like quality, output, cost, service, and speed.
Detailed explanation-4: -The balanced scorecard gets its name from: an attempt to balance financial and nonfinancial performance measures to evaluate both short-run and long-run performances in a single report.