StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Spectra Cash Payments - Case Study Example

Cite this document
Summary
This paper 'Spectra Cash Payments' tells us that the Balance scorecard is an analysis instrument developed to transform a company’s business strategy into identified, defined, quantifiable and specific objectives and to examine the performance of the company towards the achievement of the objectives…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.4% of users find it useful
Spectra Cash Payments
Read Text Preview

Extract of sample "Spectra Cash Payments"

Balanced Scorecard a Case Study: SPECTRA of Submitted by s: March 20, Spectra Cash collections from s during the six week period Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Total Cash received from previous week £40, 000 £ 40, 000 Week 1 sales £80, 000 £40, 000 £40, 000 £80, 000 Week 2 sales £70, 000 £35, 000 £35, 000 £70, 000 Week 3 sales £70, 000 £35, 000 £35, 000 £70, 000 Week 4 sales £70, 000 £35, 000 £35, 000 £70, 000 Week 5 sales £90, 000 £45, 000 £45, 000 Week 6 sales £90, 000 Total Collections £40, 000 £40, 000 £75, 000 £70, 000 £70, 000 £80, 000 £375, 000 Spectra cash payments for raw materials the six week period Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Total Beginning Balance Raw materials £9, 000 £9, 000 Week 1 Purchases (£4,000) £4, 000 £ 4,000 Total payments £9, 000 £4, 000 £13, 000 Spectra cash payments for direct labour, variable and fixed overheads the six week period Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 total Week 1 payments Direct labour Fixed overhead Variable overhead £24000 £20000 £12000 £56, 000 Week 2 payments Direct labour Fixed overhead Variable overhead £24000 £ 20000 £12, 000 £56, 000 Week 3 payments Direct labour Fixed overhead £16000 £16000 £32, 000 Week 4 payments Direct labour Fixed overhead £16000 £16000 £32, 000 Week 5 payments Direct labour Fixed overhead £16000 £16000 £32, 000 Week 6 payments Direct labour Fixed overhead £16000 £16000 £32, 000 Total payments £56, 000 £56, 000 £32, 000 £32, 000 £32, 000 £32, 000 £240, 000 WEEKLY SPECTRA CASH BUDGET for the six week period Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Total Cash Inflows Cash collected from customers £40, 000 £40, 000 £75, 000 £70 000 £70000 £80, 000 £375000 Bank overdrafts £39, 000 £6000 Cash balance c/f to week 2 o £14, 000 Total receipts & Available Balance £79 000 £60, 000 £75, 000 £70 000 £70000 £80, 000 £375000 Cash Outflows Raw material purchases £9, 000 £4000 0 0 0 0 £13, 000 Direct labour expenses £24, 000 £24, 000 £16, 000 £16, 000 £16, 000 £16, 000 £96,000 Fixed overhead expenses £20, 000 £20,000 £16, 000 £16, 000 £16, 000 £16, 000 £88, 000 Variable overhead expenses £12, 000 £12, 000 0 0 0 0 £24, 000 Total Cash Outflows £65, 000 60, 000 £32, 000 £32, 000 £32, 000 £32, 000 £253000 Cash balance (£14000) 0 £43000 £38000 £38000 £48000 £122000 The Balance scorecard is an analysis instrument developed to transform a company’s business strategy into identified, defined, quantifiable and specific objectives and to examine the performance of the company towards the achievement of the objectives. Biazzo & Garengo, (2012, 9) point out that the presence of a number of indicators coupled with the critical success factors, given the position of a company in the industry should be crucial and the defining statement of the balance scorecard. Yet, Kaplan & Norton (2013) suggest that balance scorecard is a break from factors not normally captured in the financial statements.The cash budget is a valuable instrument that can be used by the different offices in the company, and perhaps, it may have a bearing on the success of SPECTRA. Below is a design of a balance scorecard detailing the objectives, measures, targets and initiatives that can assist these officers in the company; Human Resources Director, Operations Director, Marketing Director, Financial Director, and Chief Executive Officer. The balance scored designed for SPECTRA Objectives Measures Targets Initiatives Operations To minimize reliance on overdrafts Increase weekly cash payments to 70 % Reduce to less than 10 % Communication to the customers on the change. Financial Increase market share Lowering costs by 50% Reduce variable over head by 90% Interests and other avoidable charges done with. Employee High productivity and lower level of industrial actions Setting production targets 1300 units weekly. Increasing management employee communication Lower the level of industrial action to 10% Increase wages by 5% Employee surveys to determine motivation and attachment to the company. Features of a Good balanced Scorecard A good balanced scorecard, typically, properly define the objectives of a company, more, the balance score should provide directions on cash balances of a company, profitability, market share amongst other important data. Secondly, the balance scorecard, based on stated objectives, should provide the measures that are in place to ensure the achievement of the stated objectives. Finally, initiatives should also be incorporated to ensure that the objectives are achieved. the scorecard designed for SPECTRA is important as it helps the firm in monitoring progress and evaluating performance. For instance, a reduction of the level of industrial action from 35% to 10 % can immensely aid the company in reducing the variable overhead costs,, which goes along the way in improving the image of the company and the profitability level. Pitfalls Certain pitfalls can affect implementation of the balanced scorecard, but not design of the scorecard. Niven (2006 301-302) identifies ten potential pitfalls which resonate with the case study. For instance, if SPECTRA lacks of business strategy, a lack of guiding rationale for the balanced scorecard program, lack of consistency in the management practices. In addition, the lack of proper team development and a premature linking of the scorecard to management processes can potentially lead to a pitfall. Assumptions The assumptions in designing the scorecard were three and they included the following. First, the objectives in the scorecard are complimentary as one measure; ultimately leads to another and in the transitive sequence can lead to an overall improvement of the company. Secondly, SPECTRA already have a company’s mission statement and a business strategy. Finally, the measures of success for SPECTRA have been correctly been defined. The assumptions are based on the weekly sales record of the company, meaning that SPECTRA is visible. Modernizations undertaken by the firm for the four weeks are intended to improve the corporate value of the company. The four major areas initially identified in theory, and include financial, customer, business process, and innovation and learning can match the objectives of SPECTRA. The scorecard developed above is the right one needed for the company, as it connects, objectives, to measures, to targets and finally to initiatives. This is the balance needed, however, neely (2002 17), should be designed with the intent of not only accomplish short term goals but also longer term goals. Criticisms of the Balanced Scorecard The balanced scored has been criticized essentially, for the inability for a standard body to come up with a single style to be used in design, much more like accounting bodies. In addition the score is fragmented that it does not provide a unified view with observable recommendations. Often certain schools of thought have faulted the scorecard to be an unrealistic tool that does not incorporate the needs of all stakeholders, it is merely profit driven. Bibliography Biazzo, S., & Garengo, P. (2012). Performance measurement with the balanced scorecard a practical approach to implementation within SMEs. Berlin, Springer. http://dx.doi.org/10.1007/978-3-642-24761-3. Kaplan, R. S., & Norton, D. P. (2013). The strategy-focused organization: how balanced scorecard companies thrive in the new business environment. Boston, Mass, Harvard Business School Press. Neely, A. D. (2002). Business performance measurement theory and practice. Cambridge, Cambridge University Press. http://site.ebrary.com/id/10429311. Niven, P. R. (2006). Balanced Scorecard Diagnostics Maintaining Maximum Performance. Hoboken, John Wiley & Sons. http://public.eblib.com/EBLPublic/PublicView.do?ptiID=227393userid=^u Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Coursework Management Accounting Case Study Example | Topics and Well Written Essays - 1000 words”, n.d.)
Coursework Management Accounting Case Study Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/business/1633652-coursework-management-accounting
(Coursework Management Accounting Case Study Example | Topics and Well Written Essays - 1000 Words)
Coursework Management Accounting Case Study Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/business/1633652-coursework-management-accounting.
“Coursework Management Accounting Case Study Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/business/1633652-coursework-management-accounting.
  • Cited: 0 times

CHECK THESE SAMPLES OF Spectra Cash Payments

The Ineffective Approach in Medicare Reimbursement

The ineffective approach in Medicare Reimbursement Issue Analysis Paper Name Institution Abstract The issue of reimbursement is crucial for nurses preparing for advanced roles such as those of management.... Of most important is the approach used in arriving at the reimbursement amount in each hospital that APN in managerial roles need to understand while playing their roles....
3 Pages (750 words) Essay

Our Perception of Color

Physical specifications and categories of color are associated with materials, objects, and light sources based on physical properties of color such as reflection of light, light absorption, or emission spectra.... Color Name Institution Date Color Color is a visual perception that corresponds in human to the categories referred to as blue, red, green, yellow and others....
5 Pages (1250 words) Research Paper

The Use of Higher Co-Payments to Reduce Expenditure on Health Care

The author examines the use of higher co-payments to reduce expenditure on health care, the main methods of payment of health sector organizations such as hospitals and gives recommendations on the method of paying publicly funded hospitals for inpatient care in the U.... Preferably, higher co-payments would damp only the use of low-worth care (Chernew and Fendrick n.... Since these people use the majority of health services and medicines, their out-of-pocket expenses for co-payments would be maximum and they are the ones most probably to evade or delay required health care owing to cost problems (Ku 2003)....
9 Pages (2250 words) Term Paper

The Role of MRI Spectroscopy in Differentiation between Malignant and Benign Tumors

This essay "The Role of MRI Spectroscopy in Differentiation between Malignant and Benign Tumors" ascertains the role of MRI Spectroscopy in the diagnosis of cancerous (malignant) tumors in contrast to benign and healthy growths that are non-cancerous, based on chemical information.... .... ... ... In brain-related studies, MRI Spectroscopy shows the characteristic internal biochemical makeup of glioblastoma multiforme, which is known to be a very aggressive brain tumor....
5 Pages (1250 words) Essay

Success of Federal Funds

Medicaid is just one example of the broad spectra of changes made to the United States health policy, which was mainly localized during the latter half of the twentieth century.... This paper describes state entitlement program Medicaid that pays for medical assistance for certain individuals and families with low incomes and resources....
14 Pages (3500 words) Term Paper

Electron Physics and Electron Topography

Explain the role of bremsstrahlung radiation and describe and explain line and continuous spectra.... Smooth and continuous X-ray spectra are produced by bremsstrahlung, as seen in figure 1.... ) Describe and explain line and continuous spectra.... -ray spectra of copper consist of a few sharp and intense lines superimposed on an iridescent background known as white radiation.... Line spectra will generally be brilliant and distinct positioned at a particular wavelength, whereas a continuum will be spread over a wider area of varying wavelengths....
9 Pages (2250 words) Report

Assessed Questions for Physical Chemistry

This assignment "Assessed Questions for Physical Chemistry" discusses how ethane and hydrogen react in the presence of a nickel catalyst, ethanoic acid as a weak acid and explains the difference between lattice enthalpy and standard enthalpy of formation.... .... ... ... This assignment also explains what is meant by activation energy, Molar conductivity values, writes the full electronic configurations of the atoms and ions, calculates the wavelength of the radiation emitted by a hydrogen atom when an electron makes a transition, uses VSEPR theory to predict the shape of the molecule....
27 Pages (6750 words) Assignment

The Formation of Colour Perception in Humans, Colour Blindness and Its Main Types

This review "the Formation of Colour Perception in Humans, Colour Blindness and Its Main Types" is about the formation of colour perception in human based on the conditions during the day.... The attention is drawn to four main categories defining the colour deficiencies and their main characteristics....
9 Pages (2250 words) Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us