1A - Current Period/Historical Analysis, Including the Use of Data

Question 1

A limitation or adverse effect of ratio analysis

Answer 1

Window dressing, the intentional alteration of elements of the financial statements to improve performance measures and account balances, is a negative element that often occurs when performance is evaluated using raw data or ratios.

Question 2

balanced scorecard

Answer 2

The balanced scorecard is a strategic planning and management tool, used extensively in business and industry to align business activities with the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Question 3

learning and growth Perspective

Answer 3

This perspective forms the foundation of all knowledge-worker organizations and includes employee morale and satisfaction, employee turnover, product life cycle, timing of new products to market when compared to their competitors, and management and employee training opportunities.

Question 4

Material Usage - Variation analysis

Answer 4

Usage Variation: [(ActualQ*Standard rate Per unit)-Actual used] * Standard $. If < 0; then anfavorable

Price Variation: (Actual $ - Standard $) * Actual usage. If > 0; then unfavorable

In general, quantity variation is multiply by STANDARDS price; In value variation is multiply by ACTUAL quantity