For this exercise, you will discuss the issues below in the context of Costco Wholesale Corporation. You should go to the web page Costco Wholesale Investor Relations and click on the 2011 Annual Report. In the table of contents you should at a minimum read/review the following sections: Financial Highlights; Letter to Shareholders; Business Overview; Managements Discussion and Analysis of Financial Condition and Results of Operations; and, the Consolidated Income Statement. Cite evidence that Costco provides, which indicates that it may or may not be incorporating a balanced scorecard approach in its management philosophy. Given the information provided discuss evidence of critical success factors for Costco. Make sure that your answer is in the context of our class discussion of critical success factors. In reviewing Costcos Consolidated Income Statement identify one example for each of the following: Direct manufacturing labor Direct manufacturing materials cost Manufacturing overhead Selling expense Administrative expense

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