problems with the conventional financial performance measures (e.g. Income Statement and Balance Sheet) currently being used by Souplands

As part of Soupland’s responsibility accounting system, you are asked to supply management with the following information:-

 

  1. List two problems with the conventional financial performance measures (e.g. Income Statement and Balance Sheet) currently being used by Souplands.

 

  1. List four non financial performance measures, Souplands would find useful to implement in part of their performance management procedures.

 

  1. Design a short customer satisfaction survey, Souplands would find useful to ascertain whether their customers are happy with their service and how Souplands could improve their customer service.

 

  1. List two problems, Souplands may experience with the non financial performance measures.

 

  1. What is a balanced scorecard and list the four perspectives which the balanced scorecard must address.

 

  1. For each of the following organisational subunits, indicate the type of responsibility centre which is the most appropriate.

 

    • The Mixing department on Soupland’s production line.

 

    • The factory store responsible for purchasing and issuing of raw material.

 

    • The Sales department selling Soupland’s finished products.

 

    • The maintenance department servicing equipment in the factory.

 

 


 

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