CHAPTER 15
Lean Accounting and Productivity Measurement Scorecard
COLLABORATIVE LEARNING EXERCISE SOLUTION
1. Productivity profile:
Current Year Setting A Setting B
2. Income statements for the coming year:
Setting A Setting B
Sales revenues ($40 75,000) …………….. $ 3,000,000 $ 3,000,000
Cost of inputs:
Materials:
($12 75,000) ………………………. (900,000)
3. Profit-linked measurement (where P = $12, and $12, respectively):
Setting A
PQa PQ P AQ AQ P (PQ P) – (AQ P)
Materials …….. 187,500 $ 2,250,000 75,000 $ 900,000 $ 1,350,000
Setting B
PQa PQ P AQ AQ P (PQ P) – (AQ P)
Materials …….. 187,500 $ 2,250,000 150,000 $ 1,800,000 $ 450,000
