Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
16th Edition
ISBN: 9780134475585
Author: Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Textbook Question
Chapter 12, Problem 12.21E
Strategy, balanced scorecard, merchandising operation. Gianni & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Gianni wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Gianni T-shirt. Gianni presents the following data for its first two years of operations, 2016 and 2017.
2016 | 2017 | |
1. Number of T-shirts purchased | 215,000 | 245,000 |
2. Number of T-shirts discarded | 15,000 | 20,000 |
3. Number of T-shirts sold (row 1 – row 2) | 200,000 | 225,000 |
4. Average selling price | $ 30.00 | $ 31.00 |
5. Average cost per T-shirt | $ 15.00 | $ 13.00 |
6. Administrative capacity (number of customers) | 4,500 | 4,250 |
7. Administrative costs | $1,633,500 | $1,593,750 |
8. Administrative cost per customer (row 7 ÷ row 6) | $ 363 | $ 375 |
Administrative costs depend on the number of customers Gianni has created capacity to support, not on the actual number of customers served. Gianni had 3,600 customers in 2016 and 3,500 customers in 2017.
- 1. Is Gianni’s strategy one of product differentiation or cost leadership? Explain briefly.
Required
- 2. Describe briefly the key measures Gianni should include in its balanced scorecard and the reasons for doing so.
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13-18 Strategy, balanced scorecard, merchandising operation. Roberto & Sons buys T-shirts in bulk,
applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers.
Roberto wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinc-
tive Roberto T-shirt. Roberto presents the following data for its first two years of operations, 2010 and 2011.
1 Number of T-shirts purchased
2 Number of T-shirts discarded
3 Number of T-shirts sold (row 1 - row 2)
4 Average selling price
5 Average cost per T-shirt
6 Administrative capacity (number of customers)
7 Administrative costs
8 Administrative cost per customer (row 8 + row 7)
2010
200,000
2,000
198,000
$25.00
$10.00
4,000
$1,200,000
$300
2011
250,000
3,300
246,700
$26.00
$8.50
3,750
$1,162,500
$310
13-19 Strategic analysis of operating income (continuation of 13-18). Refer to Exercise 13-18.
1. Calculate Roberto's operating income in both 2010 and 2011.
2. Calculate the…
Strategic analysis of operating income (continuation of 12-21). Refer to Exercise 12-21.
Calculate Gianni‘s operating income in both 2016 and 2017.
Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2016 to 2017.
Comment on your answers in requirement 2. What does each of these components indicate? Reference:
Strategy, balanced scorecard, merchandising operation. Gianni & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Gianni wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Gianni T-shirt. Gianni presents the following data for its first two years of operations, 2016 and 2017.
ABC is an online-to-offline platform that sells e-commerce products to offline customers through a network of agents. ABC gives a commission to agents for each sale made. ABC has 4 main product categories: electronics, fashion, supermarket, and others. Please refer to the exhibits for data sets pertaining to the questions below. Today is May 16th.
What is the average growth in average sales per agent per month from March to May target? Answer:..... %
Which one is the category with the highest and lowest average month-on-month sales growth from March to May target? Answer: Highest : .......... Lowest:.............
Today is 16th May We have got the interim result of the sales figures in the first half of May. Typically, the first half of the month constitutes of 40% of sales. Using this assumption, will we reach our May target? What % over the target will we over/under-deliver? Answer: under/over-deliver by ......... % of target
Using that assumption, which…
Chapter 12 Solutions
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Ch. 12 - Define strategy.Ch. 12 - Describe the five key forces to consider when...Ch. 12 - Prob. 12.3QCh. 12 - What is a customer preference map, and why is it...Ch. 12 - Prob. 12.5QCh. 12 - What are four key perspectives in the balanced...Ch. 12 - What are the five types of conditions to consider...Ch. 12 - Describe three features of a good balanced...Ch. 12 - What are three important pitfalls to avoid when...Ch. 12 - Describe three key components in doing a strategic...
Ch. 12 - Why might an analyst incorporate the...Ch. 12 - How does an engineered cost differ from a...Ch. 12 - What is downsizing?Ch. 12 - What is a partial-productivity measure?Ch. 12 - Prob. 12.15QCh. 12 - Jacobs Inc. is a relatively new company that has...Ch. 12 - The balanced scorecard describes all of the...Ch. 12 - Canarsie Corporation uses a balanced scorecard to...Ch. 12 - Balanced scorecard. Pineway Electric manufactures...Ch. 12 - Analysis of growth, price-recovery, and...Ch. 12 - Strategy, balanced scorecard, merchandising...Ch. 12 - Strategic analysis of operating income...Ch. 12 - Analysis of growth, price-recovery, and...Ch. 12 - Identifying and managing unused capacity...Ch. 12 - Strategy, balanced scorecard. Stanmore Corporation...Ch. 12 - Strategic analysis of operating income...Ch. 12 - Analysis of growth, price-recovery, and...Ch. 12 - Identifying and managing unused capacity...Ch. 12 - Strategy, balanced scorecard, service company....Ch. 12 - Strategic analysis of operating income...Ch. 12 - Analysis of growth, price-recovery, and...Ch. 12 - Identifying and managing unused capacity...Ch. 12 - Balanced scorecard and strategy. Scott Company...Ch. 12 - Strategic analysis of operating income...Ch. 12 - Analysis of growth, price-recovery, and...Ch. 12 - Identifying and managing unused capacity...Ch. 12 - Balanced scorecard. Following is a random-order...Ch. 12 - Balanced scorecard. (R. Kaplan, adapted) Petrocal,...Ch. 12 - Balanced scorecard. Vic Corporation manufactures...Ch. 12 - Balanced scorecard, environmental, and social...Ch. 12 - Balanced scorecard, social performance. Comtex...Ch. 12 - Balanced scorecard, environmental, and social...Ch. 12 - Partial-productivity measurement. Gable Company...Ch. 12 - Total factor productivity (continuation of 12-43)....
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