BEC performance measurement-AICPA-东方华尔

CPAReviewBusinessEnvironment&ConceptSession3PerformanceMeasurementCostPlusPricing•Pricessetatvariablecostpluspercentagemarkup(variablecosting)•Pricessetatfullmanufacturingcostpluspercentagemarkup(fullcosting)•Pricessetatfullcostplustargetedreturnoninvestment(ROI)rate(ROIapproach)•Page324SampleQuestion•Page333PracticeQuestion65-67Page333PracticeQuestion65•(X+0.15*X)*1.06=60•X=49.22•Answer:CPage333PracticeQuestion66•990,000+0.15*500*X=500*X•X=2329•AnswerAPage333PracticeQuestion67•Price1,920,000*1.1=2112,000•Difference:2,200,000-2112,000=88,000•Reception:88,000/2+2112,000=2156,000•AnswerCTransferPricing•Transferpricefromonecentertoanother•Transferpricebasedonfullprice:transferringfixedcost•Transferpricebasedonfullproductcost:transferfixedcostplusashareofothercostsinthevaluechain•Transferpricebasedonmarketprice:thepricetooutsidecustomersminusavoidablecostssuchascommissions,advertising.•Negotiatedtransferprice:fallintherangeofaceilingandafloor.TransferPricing(Continued)•Negotiatedtransferprice:fallintherangeofaceilingandafloor.•Ceiling:lowestexternalmarketprice•Floor:transferringdivision’soutlayplusopportunitycost.Tocovercost•Page334PracticeQuestion71Page334PracticeQuestion71•Conceptbased•5Unitsrequesting250reportseach.Thetotalnumberis1250,beyondcapacity•(45,000+12,000)/1250=45.6Theflooris45.6•Externalpurchasepriceis70,000/1,250=56.Theceilingis56•AnswerBShort-termDifferentialCostAnalysis•Decisioninclude:–Sellorprocessfurther–Specialorder–Outsourcing–Closeadepartmentorsegment–Salesofobsoleteinventory–ScarceresourcesShort-termDifferentialCostAnalysis•Helpmanagerconsiderdifferenceincostsandrevenueovervariousalternatives.•Thealternativewithgreatestprofitshouldbechosen•Theonlyrelevantcostsorrevenueareexpectedfuturecostsandrevenue•Allpastcostsareirrelevant•Opportunitycost(costobtainablefromanotheralternative)mustbeconsidered.Short-termDifferentialCostAnalysis(Continued)•Refertothetableonpage326•QualitativeFactors–Qualityofpurchasedpartcomparedtomanufacturedpart–Relationshipwithsuppliers–Quicknessinobtainingneededparts.Short-termDifferentialCostAnalysis(Calculation)•NOTE:Ignorethefixedcosts!•Page326Samplequestion•Page334Practicequestion73Page334Practicequestion73,74•Question73:–Conceptbased,onlyvariablecostscount–33,000+7,750=40750Answer:BOrganizationalPerformanceMeasures•IncludingFinancialandNon-financial•Purpose:(page252)–Resourceallocation–Incentivecompensation–Divisionalandbusinessunitevaluation–Budgetingandplanning–SettingtargetStrategy•Definition:page252•OrganizationalPerformanceMeasuresmustbealignedtostrategy•Strategy:Howorganizationsuseitsactivitiesandresourcestoachieveobjectives.•Execution:ensurestrategyandmonitorperformance•PerformanceMeasures:SpecificwaysTypesofPerformanceMeasures•FinancialandNon-financial•Caninclude–traditionalfinancialperformancemeasures(financialstatementanalysis)–Performancemeasuresoncustomerperformance–Performancemeasuresonsupplierperformance–PerformancemeasuresonenvironmentalperformancePerformanceMeasurementFrameworks•BalancedScorecard•ValueBasedManagementBalancedScorecard•Aperformancemeasurementsystemincludingfinancialandnon-financialperformancemeasures•Infourprimaryperspectives–Financial–Customer–Internalbusinessprocesses–Learningandgrowth•GotoPage268PracticeQuestion1-2Page268PracticeQuestion1-2•Question1ConceptbasedAnswerB•Question2ConceptbasedAnswerAFinancialPerspective•Focusonreturnoninvestment•Examplesinclude–Profitability–Returnoninvestedcapital–RevenuegrowthCustomerPerspective•Focusonperformanceinareascriticaltocustomers•Examplesinclude–customersatisfaction–CustomerretentionInternalBusinessProcessesPerspective•Focusonoperatingeffectivelyandefficiently•PerformanceMeasuresinclude–Cost–Quality–TimeforprocesscriticaltocustomersExample:numberofdefectsandcycletimeLearningandGrowthPerspective•Focusonperformancemeasuresrelatedtoemployees,infrastructure,teamingandcapabilitiesachieveforinternalprocesstoachievecustomerandfinancialobjectives•Exampleinclude:–Employeesatisfaction–Hoursoftrainingperemployee–Informationexpendituresperemployee•GotoPage268PracticeQuestion3-4Page268PracticeQuestion3-4•Question3ConceptbasedAnswerA•Question4ConceptbasedAnswerDComponentsoftheBalancedScorecard•StrategicMeasures:astatementofwhatastrategymustachieveandwhatiscriticaltosuccess•PerformanceMeasures:Describehowsuccessinachievingthestrategywillbemeasuredandtracked•BaselinePerformance:thecurrentlevelofperformancefortheperformancemeasure•Target:thelevelofperformanceorratesofimprovementneeded•StrategicInitiatives:keyactionprogramsrequiredtoachievestrategicobjectives.ComponentsoftheBalancedScorecard(Continued)•StrategicMeasures:Whattobeachieved•StrategicInitiatives:Howiswillbeachieved•PerformanceMeasures,BaselinePerformanceandTarget:Relatingtohowitwillbemeasured.•GotoPage268PracticeQuestion7,11,12Page268PracticeQuestion7,11,12•Question7ConceptbasedAnswerD•Question11ConceptbasedAnswerA•Question12ConceptbasedAnswerDValueChain•TheSequenceofbusinessprocessesintheusefulnessisaddedtotheproductsandservicesofacompany•In