Solutions Manual For
Managerial Accounting, 17th
Edition By Carl Warren, Jefferson
Jones, William Tayler
(All Chapters 15-28, 100% Original
Verified, A+ Grade)
All Chapters Arranged Reverse:
28-15
Managerial Part: Chapter 15-28
This is The Original Solutions
Manual For 17th Edition, All other
Files in The Market are
Fake/Old/Wrong Edition.
, CHAPTER 28 (FIN MAN); CHAPTER 14 (MAN)
THE BALANCED SCORECARD AND SUSTAINABILITY
DISCUSSION QUESTIONS
1. A strategic performance measurement system defines and links strategic objectives to the
performance metrics that a company uses. This system helps a company to align metrics with
overall goals and objectives (both financial and nonfinancial) and thereby measure
performance relating to company strategy. The balanced scorecard is the most well-known
example of a strategic performance management system.
2. Leading indicators are metrics that indicate something about performance in the future. For
example, poor customer satisfaction may indicate that sales will be down next month.
Lagging indicators are metrics that indicate something about performance that has already happened.
For example, this month’s actual sales is a lagging indicator of last month’s customer satisfaction.
3. The purpose of the performance perspectives is primarily to help management look beyond the
typical financial measures of performance, such as sales and profits, encouraging a more
balanced view of performance. Performance perspectives also help to organize the balanced
scorecard into types of performance.
4. Strategic objectives define the purpose of an action taken within the company. They are
essentially subcomponents of the organization’s overall mission statement or strategy. Strategic
initiatives are action plans that management implements to achieve the strategic objectives. In
other words, strategic objectives are different goals a company wants to achieve, and strategic
initiatives are the plans a company makes to achieve those goals.
5. Strategy maps show the expected cause-and-effect relationships among strategic objectives. For
example, a strategy map may illustrate that fulfilling the strategic objective to reduce delivery
times will cause customers to be more satisfied, contributing to a separate strategic objective to
please the customer. Strategy maps add value to the balanced scorecard by illustrating how each
strategic objective contributes to the overall mission or strategy of the company.
6. Some objectives on a company-wide scorecard may not specifically relate well to the
company’s specific departments (e.g., Shipping & Receiving, Sales, Production, etc.). However, to
be effective, balanced scorecards should be relevant for each level of management in the
company. Scorecard cascading accomplishes this purpose by using multiple scorecards that are
divided up into smaller, division- and job-specific scorecards.
7. People subject to motivated reasoning tend to ignore bad news, rely too heavily on good news,
stop gathering information when results look good, continue searching for good news when
things look bad, and interpret ambiguous news as good news.
8. A company using scorecard cascading will have unique scorecards for each division or
department of the company and for each level of management. This makes it difficult for
top-level managers to compare the performance of employees or managers in different divisions,
because their performance will likely be measured by different metrics. This will tempt
top-level managers to place more weight on performance metrics that these employees have in
common and possibly ignore performance metrics unique to each employee. This constitutes
common measures bias.
28-1
© 2026 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, CHAPTER 28 (FIN MAN); CHAPTER 14 (MAN) The Balanced Scorecard and Sustainability
DISCUSSION QUESTIONS (Concluded)
9. Sustainability is the general term for the efforts of companies to take responsibility for the impact
their operations have on society and to improve social well-being within and outside the firm.
Sustainability efforts have grown significantly in the last several years. Sustainability reporting has
also increased dramatically. Almost 100% of Fortune 500 firms reported in some way on
sustainability activities.
10. Companies can use the balanced scorecard to address sustainability objectives in a variety of ways.
One way is to include sustainability objectives and activities in a separate sustainability performance
perspective. Alternatively, companies can integrate sustainability strategic objectives into the four
perspectives of the balanced scorecard, creating what is called a sustainability balanced scorecard.
28-2
© 2026 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, CHAPTER 28 (FIN MAN); CHAPTER 14 (MAN) The Balanced Scorecard and Sustainability
BASIC EXERCISES
BE 28–1 (FIN MAN); BE 14–1 (MAN)
Leading indicators:
Employee turnover
Average shipping time
Median training hours per employee
Lagging indicators:
Number of returning customers
Total sales
Market share
Remember: A leading indicator can be any metric where performance is predictive of
performance in another metric. Similarly, a lagging indicator can be any metric where
performance is predicted by performance in another metric.
BE 28–2 (FIN MAN); BE 14–2 (MAN)
Performance Possible Performance Metrics
Strategic Objective Perspective (Not an exhaustive list)
Increase profits Financial • Market share
• Operating profit
• Gross profit
Increase market Customer • Number of new customers
share • Percentage of sales from new customers
• Number of leads
Improve production Internal • Average production time per product
efficiency processes • Total costs of production
• Average cost of production per product
Attract top Learning • Percentage of entry-level hires with
talent and growth master’s degree
• Percentage of entry-level hires from top
10 colleges
• Percentage of interns from top 10 colleges
who become full-time hires
BE 28–3 (FIN MAN); BE 14–3 (MAN)
Sales $ 230,000
Cost of goods sold (150,000)
Depreciation expense (30,000)
Other expenses (20,000)
Net income $ 30,000
Cost of shipping error: $3,000 + $2,000 = $5,000
Break-even shipping errors: $30,000 ÷ $5,000 = 6
28-3
© 2026 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Managerial Accounting, 17th
Edition By Carl Warren, Jefferson
Jones, William Tayler
(All Chapters 15-28, 100% Original
Verified, A+ Grade)
All Chapters Arranged Reverse:
28-15
Managerial Part: Chapter 15-28
This is The Original Solutions
Manual For 17th Edition, All other
Files in The Market are
Fake/Old/Wrong Edition.
, CHAPTER 28 (FIN MAN); CHAPTER 14 (MAN)
THE BALANCED SCORECARD AND SUSTAINABILITY
DISCUSSION QUESTIONS
1. A strategic performance measurement system defines and links strategic objectives to the
performance metrics that a company uses. This system helps a company to align metrics with
overall goals and objectives (both financial and nonfinancial) and thereby measure
performance relating to company strategy. The balanced scorecard is the most well-known
example of a strategic performance management system.
2. Leading indicators are metrics that indicate something about performance in the future. For
example, poor customer satisfaction may indicate that sales will be down next month.
Lagging indicators are metrics that indicate something about performance that has already happened.
For example, this month’s actual sales is a lagging indicator of last month’s customer satisfaction.
3. The purpose of the performance perspectives is primarily to help management look beyond the
typical financial measures of performance, such as sales and profits, encouraging a more
balanced view of performance. Performance perspectives also help to organize the balanced
scorecard into types of performance.
4. Strategic objectives define the purpose of an action taken within the company. They are
essentially subcomponents of the organization’s overall mission statement or strategy. Strategic
initiatives are action plans that management implements to achieve the strategic objectives. In
other words, strategic objectives are different goals a company wants to achieve, and strategic
initiatives are the plans a company makes to achieve those goals.
5. Strategy maps show the expected cause-and-effect relationships among strategic objectives. For
example, a strategy map may illustrate that fulfilling the strategic objective to reduce delivery
times will cause customers to be more satisfied, contributing to a separate strategic objective to
please the customer. Strategy maps add value to the balanced scorecard by illustrating how each
strategic objective contributes to the overall mission or strategy of the company.
6. Some objectives on a company-wide scorecard may not specifically relate well to the
company’s specific departments (e.g., Shipping & Receiving, Sales, Production, etc.). However, to
be effective, balanced scorecards should be relevant for each level of management in the
company. Scorecard cascading accomplishes this purpose by using multiple scorecards that are
divided up into smaller, division- and job-specific scorecards.
7. People subject to motivated reasoning tend to ignore bad news, rely too heavily on good news,
stop gathering information when results look good, continue searching for good news when
things look bad, and interpret ambiguous news as good news.
8. A company using scorecard cascading will have unique scorecards for each division or
department of the company and for each level of management. This makes it difficult for
top-level managers to compare the performance of employees or managers in different divisions,
because their performance will likely be measured by different metrics. This will tempt
top-level managers to place more weight on performance metrics that these employees have in
common and possibly ignore performance metrics unique to each employee. This constitutes
common measures bias.
28-1
© 2026 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, CHAPTER 28 (FIN MAN); CHAPTER 14 (MAN) The Balanced Scorecard and Sustainability
DISCUSSION QUESTIONS (Concluded)
9. Sustainability is the general term for the efforts of companies to take responsibility for the impact
their operations have on society and to improve social well-being within and outside the firm.
Sustainability efforts have grown significantly in the last several years. Sustainability reporting has
also increased dramatically. Almost 100% of Fortune 500 firms reported in some way on
sustainability activities.
10. Companies can use the balanced scorecard to address sustainability objectives in a variety of ways.
One way is to include sustainability objectives and activities in a separate sustainability performance
perspective. Alternatively, companies can integrate sustainability strategic objectives into the four
perspectives of the balanced scorecard, creating what is called a sustainability balanced scorecard.
28-2
© 2026 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, CHAPTER 28 (FIN MAN); CHAPTER 14 (MAN) The Balanced Scorecard and Sustainability
BASIC EXERCISES
BE 28–1 (FIN MAN); BE 14–1 (MAN)
Leading indicators:
Employee turnover
Average shipping time
Median training hours per employee
Lagging indicators:
Number of returning customers
Total sales
Market share
Remember: A leading indicator can be any metric where performance is predictive of
performance in another metric. Similarly, a lagging indicator can be any metric where
performance is predicted by performance in another metric.
BE 28–2 (FIN MAN); BE 14–2 (MAN)
Performance Possible Performance Metrics
Strategic Objective Perspective (Not an exhaustive list)
Increase profits Financial • Market share
• Operating profit
• Gross profit
Increase market Customer • Number of new customers
share • Percentage of sales from new customers
• Number of leads
Improve production Internal • Average production time per product
efficiency processes • Total costs of production
• Average cost of production per product
Attract top Learning • Percentage of entry-level hires with
talent and growth master’s degree
• Percentage of entry-level hires from top
10 colleges
• Percentage of interns from top 10 colleges
who become full-time hires
BE 28–3 (FIN MAN); BE 14–3 (MAN)
Sales $ 230,000
Cost of goods sold (150,000)
Depreciation expense (30,000)
Other expenses (20,000)
Net income $ 30,000
Cost of shipping error: $3,000 + $2,000 = $5,000
Break-even shipping errors: $30,000 ÷ $5,000 = 6
28-3
© 2026 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
