Applied Managerial Accounting

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Part 1 (Individual Portion)

Your boss recently attended an accounting seminar at which the balanced scorecard was discussed. He has asked you to prepare a presentation for the next manager’s meeting about the balanced scorecard and how EEC might adopt it. In your presentation, you should complete the following:

  • Define the elements that might be presented in a balanced scorecard.
  • Explain how the elements will be used.
  • Make a recommendation of whether or not EEC should adopt the balanced scorecard.
  • If adopted, how might it improve the company?

Part 2 (Group Portion)

The President of EEC realizes that the balanced scorecard translates an organization’s mission and strategy into operational objectives and performance measures. The group received an e-mail from him asking the group to include information in the PowerPoint presentation about tying compensation to performance measures. Discuss the following in the group presentation:

  • Describe unethical behavior that can result if the wrong performance measures are used to tie performance measures to compensation.
  • How can EEC avoid these behaviors?
  • How should EEC tie performance measures to compensation?
  • Who is responsible for establishing the performance measures?
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