Question
Question 4 a) Discuss what improvements the Balanced Scorecard has contributed over the traditional performance measurement system? Give specific examples in your answer. b)
Question 4 a) Discuss what improvements the Balanced Scorecard has contributed over the traditional performance measurement system? Give specific examples in your answer. b) Matuku's Fishing Supplies has two divisions, Basic and Deep Sea. Each division manager is evaluated based on profit produced by each division. The Basic division often sells a certain graphite fishing rod internally to the Deep Sea division for $40 per rod to cover variable costs. The Basic division also sells the same graphite rod to outside customers for $50 per rod. The Deep Sea division manager has the option of purchasing a similar rod from an outside supplier for $45. Required (show your workings for each question): i) ii) iii) Using the general transfer pricing rule, calculate the optimal transfer price assuming the Basic division is operating below capacity. Calculate the optimal transfer price assuming the Basic division is operating at full capacity. The company's CEO recently established the following policy: all internal transfers will be made at variable cost plus 10 percent. Assume the Basic division is operating below capacity. As the Deep Sea division manager, what would you do: purchase internally or purchase from an outside supplier? Why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started