Chapter 25 – Rewarding Business Performance
Financial and Managerial Accounting, 17/e 25-7
CHAPTER 25 NAME #
10-MINUTE QUIZ C SECTION
State the four performance lenses in a balanced scorecard and briefly describe each of them.
1
2
3
4
Chapter 25 – Rewarding Business Performance
CHAPTER 25 NAME #
10-MINUTE QUIZ D SECTION
State the four performance lenses in a balanced scorecard and state at least two measures for
each of them.
1
2
3
4
Chapter 25 – Rewarding Business Performance
Financial and Managerial Accounting, 17/e 25-9
SOLUTIONS TO CHAPTER 25 10–MINUTE QUIZZES
QUIZ A:
A $1,512,000 – $882,000 – $252,000 = $378,000
QUIZ B:
A $264,000 – $99,000 – $66,000 = $99,000
QUIZ C:
1. Financial perspective – This lens helps employees consider the impact of strategic decisions
on the traditional financial measures by which shareholders and creditors evaluate business
performance.
Chapter 25 – Rewarding Business Performance
QUIZ D:
1. Financial perspective:
Net income; ROI; EVA; Residual income; Bond rating.
Chapter 25 – Rewarding Business Performance
Financial and Managerial Accounting, 17/e 25-11
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Assignment Guide to Chapter 25
Brief Exercises
Exercises
Cases
Net
1 – 10
1 – 15
1
2
3
4
5
6
7
8
9
1
2
3
4
Time estimate (in minutes)
< 15
< 15
40
40
25
30
25
40
30
30
30
30
60
30
50
Difficulty rating
E
E
M
M
M
M
M
M
M
M
M
M
S
M
S
Learning Objectives:
1
2, 3, 7
√
√
√
√
√
1. Explain the importance of incentive
systems for motivating
performance.
2. Use the DuPont system to evaluate
business performance.
2, 3, 5, 7, 10
1, 4, 5, 6,
10, 11, 12
√
√
√
√
√
√
√
√
3. Identify and explain the criticisms
of using return on investment (ROI)
as the only performance measure.
2, 5,6
1, 4, 5, 6, 11
√
√
√
√
√
4. Calculate and explain residual
income (RI) and economic value
added (EVA).
3, 7, 8
1, 4, 5, 10,
11, 12, 14,
15
√
√
√
√
√
√
5. Use the balanced scorecard to
identify, evaluate, and reward
business performance.
3, 4
1, 2, 7, 9,
13, 14
√
6. Identify and explain the components
of management compensation and
the trade-offs that compensation
designers make.
1, 9
1, 7, 8, 15
√
√
√
√
√