Question
Balanced Scorecard Preparation The following information is presented for the Worldwide Auditor's Association. For the year ended November 30, 2017, the organization had set a
Balanced Scorecard Preparation The following information is presented for the Worldwide Auditor's Association. For the year ended November 30, 2017, the organization had set a membership goal of 100,000 members with the following anticipated results (and actual results for the year-end).
Additional information (PLANNED):
Membership dues were increased from $360 to $400 at the beginning of the year. One-year subscriptions to Worldwide Auditor were anticipated to be 2,400 units. Advertising revenue was budgeted at $320,000. Each magazine was budgeted at a cost of $36. A total of 29,000 technical reports were anticipated at an average price of $80 with average costs of $22. The budgeted one-day courses had an anticipated attendance of 33,000 with an average fee of $450. The two-day courses had an anticipated attendance of 3,000 with an average fee of $770 per person. The organization began the year with net capital assets of $88,000,000 with a planned cost of capital of 9 percent.
Additional 2017 information (ACTUAL):
Membership dues are $400 per year, of which $100 is considered to cover a one-year subscription to the associations journal. Other benefits include membership in the association and unit affiliation. One-year subscriptions to Worldwide Auditor are sold to nonmembers for $160 each. A total of 2,500 of these subscriptions were sold. In addition to subscriptions, the journal generated $400,000 in advertising revenue. The cost per magazine was $40. A total of 30,000 technical reports were sold by the Books and Reports Department at an average unit selling price of $90. Average costs per publication were $24. The association offers a variety of continuing education courses to both members and nonmembers. During 2017, the one-day course, which cost participants an average of $500 each, was attended by 31,300 people. A total of 1,985 people took two-day courses at a cost of $800 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 $90,060,000 and had an actual cost of capital of 9 percent.
Required a. Prepare a balanced scorecard for IAA for November 2017 with calculated key performance indicators presented in two columns for planned performance and actual performance--include key financial, customer, and operating performance indicators.
Include all zeros with figures. For example, 2017 Planned Total Revenues for $55,859.6 (thousand) is entered as $55,859,600
b. Which of the evaluation areas you selected indicated success and which indicated failure?
Success areas:
Failure areas:
Worldwide Auditors' Association | ||
---|---|---|
Revenues and Expenses | ||
For Year Ending November 30, 2017 | ||
($ in thousands) | Planned | Actual |
Revenues | $55,859.6 | $55,054.0 |
Expenses | ||
Salaries | 27,900.0 | 29,000.0 |
Other personnel costs | 6,975.0 | 6,786.0 |
Occupancy costs | 3,859.6 | 5,650.0 |
Reimbursement to local units | 1,480.0 | 1,600.0 |
Other membership services | 1,050.0 | 1,000.0 |
Printing and paper | 525.0 | 640.0 |
Postage and shipping | 220.0 | 242.0 |
General and administrative | 1,090.0 | 1,076.0 |
Excess of revenues over expenses | $12,760.0 | $ 9,060.0 |
2017 Planned | 2017 Actual | |
Financial information | ||
Total revenues | $Answer | $Answer |
Total costs | Answer | Answer |
Journal advertising | Answer | Answer |
ROI (round to three decimal places) | Answer | Answer |
Residual income | ||
Income | $Answer | $Answer |
Minimum return | Answer | Answer |
Residual income | $Answer | $Answer |
Customer information | ||
Course attendance | Answer | Answer |
Technical reports sold | Answer | Answer |
Operating criteria | $Answer | $Answer |
Average cost per magazine | $Answer | $Answer |
Other personnel costs vs. salaries* | Answer | Answer |
*Compute as a ratio. Round three decimal places. | ||
1. | Answer | |
2. | Answer | |
3. | Answer | |
1. | Answer | |
2. | Answer | |
3. | Answer |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started