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a. Give some exam of key financial performance indicators (no computations needed) that could be part of a balanced scorecard for the IAA. b. Give
a. Give some exam of key financial performance indicators (no computations needed) that could be part of a balanced scorecard for the IAA.
b. Give some examples of key customer and operating performance indicators (no computations needed) that could be part of a balanced scorecard for IAA.
Selection of Balanced Scorecard Items The International Accountants' Association is a professional association. Its current membership totals 97,600 worldwide. The association operates from a central headquarters in New Zealand but has local membership units throughout the world. The local units hold monthly meetings to discuss recent developments in accounting and to hear professional speakers on topics of interest. The association's journal, International Accountant, is published monthly with feature ankles and topical interest areas. The association publishes books and reports and sponsors continuing education courses. A statement of revenues and expenses follows: INTERNATIONAL ACCOUNTS ASSOCIATION Statement of Revenues and Express For Year Ending November 30, 2014 $26,700,000 Revenues Expenses Salaries $14,000,000 Other personal costs 3,400,000 Occupancy costs 2,000,000 Reimbursement to local units 800,000 Other membership services 500,000 Printing and paper 320,000 Postage and shipping 114,000 General and administrative 538,000 Excess of revenues over expenses (21,672,000) $5,028,000 Additional information follows: Membership dues are $200 per year, of which $50 is considered to cover a oneyear subscription to the association's journal. Other benefits include membership in the association and unit affiliation. One-year subscriptions to International Accountant are sold to nonmembers for $80 each. A total of 2,500 of these subscriptions were sold. In addition to subscriptions, the journal generated $200,000 in advertising revenue. The cost per magazine was $20. A total of 30,000 technical reports were sold by the Books and Reports Department at an average unit selling price of $45. Average costs per publication were $12. The association offers a variety of continuing education courses to both members and nonmembers. During 2014, the one-day course, which cost participants an average of $250 each, was attended by 31,300 people. A total of 1,985 people took two-day courses at a cost of $400 per person. General and administrative expenses include all other costs incurred by the corporate staff to operate the association. The organization has net capital assets of $44,000,000 and had an actual cost of capital of 11 percent. Required a. Give some exam of key financial performance indicators (no computations needed) that could be part of a balanced scorecard for the IAA. b. Give some examples of key customer and operating performance indicators (no computations needed) that could be part of a balanced scorecard for IAA. Selection of Balanced Scorecard Items a. Give some exam of key financial performance indicators (no computations needed) that could be part of a balanced scorecard for the IAA. Some of the key financial performance indicators that could form part of the balanced scorecard for the IAA include the cash flow, the periodic sales growth, operating income, increase in market share as well as the return on investment. At IAA, it will be critical to assess the net revenues of the company after the deductions of the operating expenses. Also, the financial indicators are compared with the previous years to understand the performance of the company. b. Give some examples of key customer and operating performance indicators (no computations needed) that could be part of a balanced scorecard for IAA. The examples of the key customer and operating performance indicators that could be part of the balanced scorecard for IAA includes the percentage of sales from new products, ontime delivery of products to the customers and the percentage of the key accounts' purchases within the company. The operating performance indicators include the actual production compared to the planned production, unit cost, production efficiency and the level of competition. Both the customer and operating performance indicators are critical towards evaluating the performance of IAAStep by Step Solution
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