BALANCED SCORECARD AND
RESPONSIBILITY ACCOUNTING –
SUGGESTED ANSWERS AND
SOLUTIONS
Bryan Trinidad, CPA, CMA, MBA
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
☺ - Suggested answers and solutions - ☺
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 14
RI =Income - [Assets*Minimum ROI]
45,000 = X - [750,000*12%]
45,000 = X - 90,000
45,000 + 90,000 = X
135,000 = X
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 14
Sales (units) = Income + FC
CM/u
= 135,000 + 200,000
[50-30]
= 16,750 units
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 15
RI =Income - [Assets*Minimum ROI]
50,000 = X - [1,500,000*10%]
50,000 = X - 150,000
50,000 + 150,000 = X
200,000 = X
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 15
Sales (units) = Income + FC
CM/u
= 200,000 + 280,000
[20-12]
= 60,000 units
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 15
Annual Turnover =
Sales
Assets
= 60,000*20
1,500,000
= 0.80
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 16
Market value
Debt
10M
Equity
8M
Total
18M
WACC= [(kD AT *WD) +(Kp *Wp) +(Ke*We)]
= [(12%*0.75)*(10/18)]
+ [12%*(8/18)]
= 10.33%
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 16
EVA =NOPAT - [(TA-CL)*WACC]
= [960,000*0.75]
-[(4,000,000-200,000)*10.33%]
= 720,000 - 392,540
=327,460
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 17
Sales at VC [(20T-12T)*16]
Sales at Reg. SP [2T*24]
Total Sales
Divide by: No. of units
Lowest transfer price
128,000
48,000
176,000
10,000
17.60
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 17
Alternative computation:
Variable costs per unit
Opportunity costs per unit (Lost CM/unit)
CM from ES [2T*(24-16)]
16,000
Divide by: No. of units
10,000
Lowest transfer price
16
1.60
17.60
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 18
Increase in CM (P)[30,000*(87-65)]
Lost CM (P) [15,000*(100-65)]
Net increase in profit (P)
Increase in profit(Q) [30,000*(90-87)]
Increase in overall profit
660,000
(525,000)
135,000
90,000
225,000
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 19
Throughput time=PT + IT + QT + MT
= 3 + 0.7 + 4 + 0.3
= 8 days
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 20
Minimum price of seller
Maximum price of buyer
20
45
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 21
CM/unit [40-20]
*No. of units
Increase in profit
20
4,000
80,000
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 22
Lost CM/unit [50-45]
*No. of units
Decrease in profit
5
4,000
20,000
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 23
Return on sales = Income
Sales
= 2,000,000
50,000,000
= 4%
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 24
Assets turnover =
Sales
Assets
= 50,000,000
20,000,000
= 2.5
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 25
Return on investment = Income
Assets
= 2,000,000
20,000,000
= 10%
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 25
Alternative computation: Du-pont
ROI = Return on sales *Assets TO
Income
Sales
=
*
Sales
Assets
= 4% * 2.5
= 10%
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 26
RI =Income - [Assets*Min req’d ROR]
= 2,000,000 - [20,000,000*8%]
= 2,000,000 - 1,600,000
=400,000
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 27
Productivity = Output
Input
= 1,500
6,000
= 0.25 unit per peso input
Mat A [450*1.5]
Mat B [300*2.75]
DL
[300*15]
Total peso input
675
825
4,500
6,000
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 28
Productivity =
Output
Input
=1,500 units
300 hours
=5 units per hour
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 29
Sales
Less: TC [275T+125T]
Mark-up
100%
25%
500,000
400,000
100,000
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
MC No. 30
VMC[275T*0.8]
VSE [125T*0.64]
Total VC
220,000
80,000
300,000
Sales
Less: VC
Mark-up
500,000
300,000
200,000
100%
66.67%
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
1. D
6. D
11. D 16. B 21. D 26. D
2. B
7. B
12. A 17. C
3. B
8. D
13. A 18. B 23. B 28. A
4. A
9. D
14. B 19. A 24. C
5. A
10. C 15. B 20. B 25. A 30. D
22. C
27. C
29. A
Since 1977
BALANCED SCORECARD AND RESPONSIBILITY ACCOUNTING
☺ - end - ☺