ECONOMICS

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COST ACCOUNTING

STANDARD COSTING AND VARIANCE ANALYSIS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
XYZ run a chain of fitness centres. It uses a balanced scorecard approach and has set the followinggoals for the period.* To reduce the number of customer complaints* To increase the number of new members* To reduce the cost per memberThe following data have been provided:20X1 20X2Total members 8, 800 9, 100of which-new 1, 300 700of which-existing 7, 600 8, 400Complaints 560 565Total cost $14.08m $14.287mWhich TWO of the following statements regarding XYZ’s performance are true?
A
XYZ has failed to succeed in meeting any of its goals
B
XYZ’s cost per member in 20X1 was $1, 600
C
XYZ’s number of complaints per member in 20X2 was 0.062
D
XYZ’s total cost has increased by 3.4%
E
XYZ’s number of total members has increased by 1.47%
Explanation: 

Detailed explanation-1: -A balanced Scorecard refers to a strategic planning and management system used to identify, modify and control various internal business functions and their resulting outcomes.

Detailed explanation-2: -The balanced scorecard involves measuring four main aspects of a business: Learning and growth, business processes, customers, and finance. BSCs allow companies to pool information in a single report, to provide information into service and quality in addition to financial performance, and to help improve efficiencies.

Detailed explanation-3: -The balanced scorecard is a management system aimed at translating an organization’s strategic goals into a set of organizational performance objectives that, in turn, are measured, monitored and changed if necessary to ensure that an organization’s strategic goals are met.

Detailed explanation-4: -The four perspectives of a traditional balanced scorecard are Financial, Customer, Internal Process, and Learning and Growth.

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