Reference no: EM132804847

Question -

Part I: Balanced Scorecard

Twit App Ltd manufactures accessories for mobile phones, which is a fast growing and very competitive market. Twit App does not produce or sell mobile phones so has to rely on developing close relationships with mobile phone manufacturers to ensure that it can design and launch the right accessories in time for the launch of new models of phones.

Twit Apps management team is considering designing a balanced scorecard to better manage its competing priorities, using Kaplan and Norton's four perspectives. The following objectives have already been formulated and will now need to be reworked to suit the design of BSC.

Achieve 10% increase in sales revenue and a 20% market share.

Achieve a return on investment of 15%.

Design innovative accessories to suit the latest models of mobile phones and launch these on the market as soon as new phones are released.

Have flexible manufacturing processes and employee skills to produce the right products.

Required - For each perspective suggest one lag and lead indicator.

Part II: Activity Based Casting

Wheelco Pty Ltd uses activity based costing to calculate the cost of its products. The relevant activities and costs are as follows:

Total Overheads $100,000

Cost Categories:

Costs relating to set ups 50%

Costs relating to inspections 50%

Set ups: 100

Inspections: 50

Required -

i. Identify the cost drivers for each of the cost categories above.

ii. Calculate the cost per driver.