some text

Managerial accounting | Accounting homework help

Exercise 2 (LO 1)


Higgly Industries wants to formalize its management structure by designing an organization chart.  The company has a president, a board of directors, and two vice presidents.  Four discretionary cost centers-Business Office, Personnel, Technology Services, and Physical Plant-report to one of the vice presidents.  The other vice president has one production facility with three cost centers reporting to her.  Draw the company’s organization chart.




Exercise 8 (Economic Value Added LO 3) Accounting Connection


Game, LLP, is evaluating the performance of three divisions: Rock, Scissors, and Paper.  Using the data that follow, compute the economic value added by each division, and comment on each division’s performance.












After-tax operating income




Total Assets




Current liabilities




Cost of capital







Exercise 12 (The balanced scorecard LO 4) Business Application


Unique Exclusive sells antiques to discerning clients.  The business has developed the following business objectives:


  1.  To buy on the antiques that sell

  2. To have repeat customers

  3. To be profitable and grow

  4. To keep employee turnover low


The business also developed the following performance measures:


  1.  Growth in revenues and net income per quarter

  2. Average unsold antiques at the end of the month as a percentage of the total antiques purchased that month

  3. Number of unemployment claims

  4. Percentage of repeat customers


Match each of these objectives and performance measures with the four perspectives of the balanced scorecard: financial perspective, learning and growth perspective, internal business processes perspective, and customer perspective. 


Problem 3 Evaluating Profit and Investment Center Performance (LO 1, 2, 3)


The managing partner of the law firm Sewell, Bagan, and Clark, LLP, makes asset acquisition and disposal decisions for the firm.  As managing partner, she supervises the partners in charge of the firm’s three branch offices.  Those partners have the authority to make employee compensation decisions.  The partners’ compensation depends on the profitability of their branch office.  Vanessa Smith manages the City Branch, which as the following master budget and actual results for the year ended December 31.



Master Budget

Actual Results

Billed Hours






Controlled variable costs:


Direct Labor



Vairable overhead



Contribution margin



Controllable fixed costs:





Other administrative expenses



Branch operating income








  1.  Assume that the City Branch is a profit center.  Prepare a performance report that includes a flexible budget.  Determine the variances between actual results, the flexible budget, and the master budget.

  2. ACCOUNTING CONNECTION: Evaluate Vanessa Smith’s performance as manager of the City Branch.

  3. Assume that the branch managers are assigned responsibility for capital expenditures and that the branches are thus investment centers.  City Branch is expected to generate a desired ROI of at least 30 percent on average invested assets of $40,000.

    1. Compute the branch’s return of investment and residual income (Round percentages to two decimals places).

    2. ACCOUNTING CONNECTION: Using the ROI and residual income, evaluate Vanessa Smith’s performance as branch manager.




Total variance between actual and flexible income: $1,900U


Total variance between flexible and master budget operating income: $1,800U


Problem 5 (The balanced scorecard and benchmarking LO 4) BUSINESS APPLICATION


Howski Associates is an independent insurance agency that sells business, automobile, home, and life insurance.  Maya Doyle, senior partner of the agency, recently attended a workshop at the local university in which the balanced scorecard was presented as a way of focusing all of a company’s functions on its mission.  After the workshop, she met with her managers in a weekend brainstorming session.  The group determined that Howski’s mission was to provide high-quality, innovative, risk-protection services to individuals and businesses.  To ensure that the agency would fulfill this mission, the group established the following objectives:


  • To provide a sufficient return on investment by increasing sales and maintaining the liquidity needed to support operations

  • To add value to the agency’s services by training employees to be knowledgeable and competent

  • To retain customers and attract new customers

  • To operate and efficient and cost-effective office support system for customer agents


To determine the agency’s progress in meeting these objectives, the group established the following performance measures:


  • Number of new ideas for customer insurance

  • Percentage of customers who rate services as excellent

  • Average time for processing insurance applications

  • Number of dollars spent on training

  • Growth in revenues for each type of insurance

  • Average time for processing claims

  • Percentage of employees who compelte 40 hours of training during the year

  • Percentage of new customer leads that result in sales

  • Cash Flow

  • Number of customer complaints

  • Return on assets

  • Percentage of customers who renew policies

  • Percentage of revenue devoted to office support system (information systems, accounting, orders, and claims processing)




  1.  Prepare a balanced scorecard for Howski by stating the agency’s mission and matching its four objectives to the four stakeholder perspectives: the financial, learning and growth, internal business processes, and customer.  Indicate which of the agency’s performance measure would be appropriate for each objective.

  2. Howski is a member of an association of independent insurance agents that provides industry statistics about many aspects of operating an insurance agency.  What is benchmarking, and in what ways would the industry statistics assist Howski in further developing its balanced scorecard?


Order a unique copy of this paper
(550 words)

Approximate price: $22

Place Order
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages