I just need question 4 ! thanks! Compton Associates is an architectural firm that has...

80.2K

Verified Solution

Question

Accounting

I just need question 4 ! thanks!

Compton Associates is an architectural firm that has been in practice only a few years. Because it is a relatively new firm, the market for the firms services is very competitive. To compete successfully, Compton must deliver quality services at a low cost. Compton presents the following data for 2016 and 2017.

imageArchitect labor-hour costs are variable costs. Architect support costs for each year depend on the Architect support capacity that Compton chooses to maintain each year (that is, the number of jobs it can do each year). Architect support costs do not vary with the actual number of jobs done that year.

I just need question 4 ! thanks!

Required: 1. Is Compton Associates strategy one of product differentiation or cost leadership? Explain briefly. (5 marks)

2. Describe key measures you would include in Comptons balanced scorecard and your reasons for doing so. (10 marks)

3. Calculate the operating income of Compton Associates in 2016 and 2017. (5 marks)

4. Describe the features of a good balanced scorecard. (10 marks)

2016 2017 1. Number of jobs billed 2. Selling price per job 3. Architect labor-hours 4. Cost per architect labor-hour 5. Architect support capacity (number of jobs the firm can do) 6. Total cost of software-implementation support 7. Software-implementation support-capacity cost per job (row 6 = row 5) 40 $32,000 24,000 $35 60 $168,000 $2,800 50 $30,000 27,000 $36 60 $180,000 $3,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students