The following assignment involves topics covered in basic cost accounting and advancedcost accounting.
Project Choice #2: Comprehensive Decision-Making Paper (7-10 pages)
Complete a balanced scorecard for Apple, Inc. The balanced scorecard is to include metrics from each of the following areas:
- Pricing Decisions and Customer profitability: Select a gross margin percentage for Apple and a pricing strategy. Justify your strategy.
- Support Department Cost Allocation: Provide two departments that require tracking and present the target cost for those departments as a percentage of sales in total. Provide your selected percentage and rationale.
- Allocation of Joint Products and Byproducts: Indicate a potential byproduct that is realizable from Apple’s operations. Express the total cost of the byproduct as a percentage of sales. Justify your selection.
- Spoilage, Rework, and Scrap: Indicate the expected percentage level of spoilage and rework for Apple as a percentage of sales. Justify your selection.
- Quality Analysis: Develop a target of quality acceptance that is justified based on requirement 4. Justify your selection.
- Balanced Scorecard: Provide a learning and growth metric of Apple for the scorecard. Justify your selection.
- Inventory Management: Presume you will implement JIT. Project the decrease in percentage of inventory investment that will be realized. Justify your selection.
- Management Control Systems, Performance Measurement: Include two of the following management performance metrics: return on investment, residual income, and Economic Value Added®. Justify your selection.
Include the following:
Present Apple’s scorecard in a supporting table.
Include an executive summary of one page and your justification of each selection.
Include an operational approach that would represent a primary initiative to achieving the expected level of performance.
Your paper should meet the following requirements:
- 7-10 pages in length including supporting tables.
- Formatted according toAPA requirements.
- Include at least five outside sources.
The best textbook to use for this assignment is Cost accounting: A managerial emphasis (15th Ed.) by Horngren, Datar, & Rajan. There are 8 items listed in the above assignment. Each item corresponds to a chapter in the aforementioned textbook. For example, item 4 corresponds to chapter 18.