You are the cost accountant for a medium-sized business. You have been asked to propose a new system of responsibility accounting. Ownership is looking for a balanced scorecard to use in performance evaluation. This is a fictitious company that you will createthink of the business you always wanted to start (assume it is a mature company). As part of the introductory material, include a summary of the company, product offerings, marketplace and competition. For this company, prepare a balanced scorecard proposal which includes metrics from each of the following modules:

Pricing Decisions and Customer Profitability: Select a gross margin percentage for your company and a pricing strategy. Justify your strategy.

1. Support Department Cost Allocation: Provide two departments that require tracking, and present the target cost for those departments as a percentage of sales in total. Provide your selected percentage and rationale.
2. Support Department Cost Allocation: Provide two departments that require tracking, and present the target cost for those departments as a percentage of sales in total. Provide your selected percentage and rationale.
3. Spoilage, Rework, and Scrap: Indicate the expected percentage level of spoilage and rework for the company as a percentage of sales. Justify your selection.
4. Quality Analysis: Develop a target of quality acceptance that is justified based on requirement 4. Justify your selection.
5. Balanced Scorecard: Provide a learning and growth metric of your choice for the scorecard. Justify your selection.
6. Management Control Systems, Performance Measurement: Include two of the following management performance metrics: return on investment, residual income, and economic value added. Justify your selection.
7. Explain the ethical issues that need to be navigated in performance management. How do expectations and measurement influence behavior? Review and cite the IMA Statement of Ethical Professional Practice to support your explanation.