QUESTION FOUR (15 marks) (c) Discuss the possible types of BSC structure if implemented for SEPI. (8 marks) All-Planters Sin Bhd purchases the 40,000 starters that it installs in its standard line of farm tractors from a supplier for the price of RMB.40 per unit. Due to the reduction in output, the (d) Discuss the difficulties that Gopika will face in implementing BSC in SEPI. company now has idle capacity that could be used to produce the starters rather than buying from (4 marks) an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is RM9.20 as shown below. (END OF QUESTIONS) If All-Planters Sda Bhy decides to make the starters, a supervision would have to be hired (at a salary of RM60,000) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is RM80,000 per period. Depreciation is due to obsolescence rather than wear and tear. REQUIRED: What is the financial advantage (disadvantage) of making the 40,000 starters instead of buying them from an outside supplier? (15 Marks) QUESTION FIVE ( 30 marks) This question is based on Emerald Emerging Market Case Studies: Leveraging the balanced scorecard - a tool for SME advancement. The case describes the Balance Scorecard (BSC) methodology can be used to monitor the performance of SME firm against strategic goals. It can be sucoessfully implemented in smaller organization because of their simpler set-ups and tendency to arrive at a consensus quickly. REQUIRED: (a) Provide FIVE (5) quantifiable performance indicators for the SME. (10 marks) (b) Discuss the role of BSC implementation in SMEs. (8 marks) QUESTION FOUR (15 marks) (c) Discuss the possible types of BSC structure if implemented for SEPI. (8 marks) All-Planters Sin Bhd purchases the 40,000 starters that it installs in its standard line of farm tractors from a supplier for the price of RMB.40 per unit. Due to the reduction in output, the (d) Discuss the difficulties that Gopika will face in implementing BSC in SEPI. company now has idle capacity that could be used to produce the starters rather than buying from (4 marks) an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is RM9.20 as shown below. (END OF QUESTIONS) If All-Planters Sda Bhy decides to make the starters, a supervision would have to be hired (at a salary of RM60,000) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is RM80,000 per period. Depreciation is due to obsolescence rather than wear and tear. REQUIRED: What is the financial advantage (disadvantage) of making the 40,000 starters instead of buying them from an outside supplier? (15 Marks) QUESTION FIVE ( 30 marks) This question is based on Emerald Emerging Market Case Studies: Leveraging the balanced scorecard - a tool for SME advancement. The case describes the Balance Scorecard (BSC) methodology can be used to monitor the performance of SME firm against strategic goals. It can be sucoessfully implemented in smaller organization because of their simpler set-ups and tendency to arrive at a consensus quickly. REQUIRED: (a) Provide FIVE (5) quantifiable performance indicators for the SME. (10 marks) (b) Discuss the role of BSC implementation in SMEs. (8 marks)