Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Exercise 22

Balanced Scorecards and Strategy Maps

TechMasters, Inc., has the following mission statement:

?To be the leader in innovation and new products for the industrial control instruments market.

TechMasters’s CFO, who has just returned from an executive seminar on performance measurement, tells you that she has developed the following initial balanced scorecard as part of an exercise during class:

Perspective	Objectives	Perspective	Objectives
Financial	• Increased profitability	Internal	• Increased cycle efficiency
	• Increased market share
Customer	• Repeat orders	Learning and growth	• Employee satisfaction
	• Customer referrals		• Employee retention

Required

Comment on the scorecard and make recommendations about adding or deleting measures to align the scorecard with the company’s strategy as defined by its mission statement.