Question
You've recently been appointed as the management accountant for Wagga Wagga Veterinary Hospital (WWVH) that offers two primary services, farm animal services and pet care
You've recently been appointed as the management accountant for Wagga Wagga Veterinary Hospital (WWVH) that offers two primary services, farm animal services and pet care services. You have been asked by the managing director to advice on any obstacles that could be impeding the effectiveness of cost management and performance management systems at WWVH. During your preliminary analysis, you have found out that providing veterinary care to farm animals requires travel to the farm animal (house calls), while veterinary care to pets generally requires that pet be brought into the clinic. As part of your discussions with senior management to determine the contribution that each of these two types of services make to overall profit, one director argues for allocating overhead using activity-based costing while the other director argues for a simpler overhead cost allocation based on direct labour hours. The directors agree to use next year's budgeted data, for analysis and comparison purposes. Following discussions with the senior management team, you've made the decision to implement both activity based costing and the balanced scorecard. Formulate a balanced score card for WWVH (Use the following template), also show the strategy map briefly.
Perspectives | Strategic Objectives | Measures | Targets | Initiatives | Sustainability |
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