Chapter 9 and Chapter 10

- Strategic planning involves setting long-term goals that may extend to 5 t 10 years into the future. - Rolling Budget is a budget that is continuously updated so that the next 12 months of operations are always budgeted. - Budgeting is helpful to plan for cash inflows and outflows. It includes planning for ending inventory. - A budget is a quantitative expression of a plan that helps managers coordinate and implement the plan. - An advantage of the budgeting process is that it coordinated the activities of the organization. - Regarding the budgeting process, the budget should be designed from the bottom up, with input from employees at all levels. - Benefits of Budgeting: Focuses on managements attention on the future, improved decision-making processes and motivation by employees. - Budgets communicate financial plans throughout the company. - Budgets are used for all of the following: planning for the future, controlling operations and directing operations. - One of the key benefits of budgeting is that it forces managers to plan. - Management uses budgeting to express its plans and to assess how well it's reaching its goals. - The Capital Expenditures Budget is not part of the operating budget. - Participative Budgeting is budgeting that involves the participation of many levels of management. Most companies use this when developing budgets each year. - Participative Budgeting is beneficial for these reasons: *Lower-level managers are closer to the action, and should have a more detailed knowledge for creating realistic budgets. * Managers are more likely to accept, and be motivated by, budgets they helped to create. - Participative Budgeting also has disadvantages: * The budget process can become much more complex and time consuming as more people participate in the process * Managers may intentionally build slack into the budget for their areas of operations by over budgeting expenses or under budgeting revenue. - Managers may intentionally build slack into the budget to have the resources they need in the event of budget cuts, because of uncertainty about the future, to make their performance look better. - Budget Committee reviews the submitted budgets, remove unwarranted slack, and revise and approve the final budget. Often includes upper management, such as CEO and CFO, as well as managers from every area of the value chain. - Zero-based Budgeting is when all managers begin with a budget of zero and must justify every dollar they put in the budget. This approach is very time consuming and labor intensive. Therefore companies only use it from time to time. - Which of the following is an advantage of zero-based budgeting? It forces managers to justify every dollar put in the budget, so some expenses may be lower than they were in previous years. - The production budget is part of the operating budgets. Which of the following alternatives reflects the proper order of preparing components of the master budget? Sales/Operating budget -> Production/ Capital Expenditures budget -> Direct materials/Financial budget - Three key benefits of budgeting: Planning, Communication, Benchmarking. - If a budget is perceived to be “fair”, employees are likely to be motivated by it. - Variance or the difference between actual and budgeted figures, is used to evaluate how well the manager controlled operations and to determine whether the plan needs to be revised. - Master Budget is the comprehensive planning document for the entire organization. - The master budget is the set of budgeted financial statements and supporting schedules for the entire organization. - The master budget includes both the operating budgets and the financial budgets. - The cash/sales budget is the cornerstone of the master budget - The master budget of a service company has fewer individual budget components than does the master budget of a manufacturing company. - Operating Budgets are the budgets needed to run the daily operations of the company. This is the major part of the master budget and focuses on the income statement and its supporting schedules. - Operating Budgets set the targeted revenue and expenses for the period. - Which of the following budgets or financial statements is part of the operating budget? Sales budget, which is the first step. - Total Sales Revenue = Number of Unit Sales * Sales Price Per Unit - On the production budget, the number of units to be produced is computed as: Unit Sales + Desired End Inventory – Beginning Inventory - On the direct labor budget, the total quantity of direct labor hours needed is computed as: units to be produced × direct labor hour per unit. - On the direct materials budget, the total quantity of direct materials needed is computed as: quantity needed for production + desired end inventory of DM - beginning inventory of DM. - The production budget is the only budget stated ONLY in units, not dollars. - The direct materials budget starts with the number of units to be produced. - The production budget begins with the number of units to be sold. - Which of the following budgets usually shows separate sections for fixed and variable costs? Operating expense budget and manufacturing overhead budget - The Sales Budget is a plan that shows the units to be sold and the projected selling price and is also the starting point in the budgeting process. - Which of the following is part of the operating budget? Inventory, purchases and cost of goods sold budget, Sales budget and Budgeted income statement. - Which of the following is included in the operating budget? Budgeted income statement, Sales budget and Inventory budget - Loyal Pet Company expects to sell 5,000 beefy dog treats in January and 9,000 in February for $3 each. What will be the total sales revenue reflected in the sales budget for those months? Answer: January 5000 × $3 = $15,000; February 9000 × $ 3 = $ 27,000 - Mockingbird Company expects to sell 5,200 bird perches in January and 9,500 in February for $3 each. What will be the total sales revenue reflected in the sales budget for those months? Answer: January 5,200 × $3 = $15,600; February 9,500 × $ 3 = $ 28,500 - CatNap Company has two products: Kittyz and Katz. A March sales forecast projects 20,000 units of Kittyz and 15,000 units of Katz are going to be sold at prices of $15 and $12, respectively. The desired ending inventory of Kittyz is 20% higher than the beginning inventory, which was 2,000 units. How much are total March sales for Kittyz anticipated to be? 20,000 × $ 15 = $ 300,000 - DogDayz Company has two products: Doggyz and Pupz. A March sales forecast projects 22,000 units of Doggyz and 15,000 units of Pupz are going to be sold at prices of $17.50 and $12.00, respectively. The desired ending inventory of Doggyz is 20% higher than the beginning inventory, which was 2,000 units. How much are total March sales for Doggyz anticipated to be? 22,000 × $ 17.50 = $ 385,000 - McCoy Company wants to have an ending inventory of 7,000 units. McCoy Company has beginning inventory of 9,000 units and expects to sell 33,000 units. How many units should McCoy Company produce? Units to Be produced: Unit Sales + Desired End Inventory – Beginning Inventory So, 33000 + 7000 – 9000 = 31000 - Rubino Corporation desires a December 31 ending inventory of 900 units. Budgeted sales for December are 2,650 units. The November 30 inventory was 850 units. What are budgeted purchases in units? Unit Sales + Desired End Inventory – Beginning Inventory So, 2650 + 900 – 850 = 2700 - Meers Corporation had beginning inventory of 21,000 units and expects sales of 76,500 units during the year. Desired ending inventory is 19,500 units. How many units should Meers Corporation produce? Unit Sales + Desired End Inventory – Beginning Inventory 76500 + 19500 – 21000 = 75000 - Bruner Stores wants to have 500 shovels in ending inventory on December 31. Budgeted sales for December are 1,950 shovels. The November 30 inventory was 320 shovels. How many shovels should Benson Stores purchase for December? 1950 + 500 – 320 = 2130 - Crafty Carpentry Company produces and sells a shelf for $25 each. The beginning inventory is 2,000 shelves, and the desired ending inventory is 2,200 shelves. If budgeted production is 12,500 shelves, what is the forecasted sales revenue from the shelves? Production - Desired End Inventory + Beginning Inventory * Price for Each 12500 – 2200 + 2000 = 12300 12300 * 25 each = 307500 - SportSupplies Corporation has budgeted purchases of inventory for December of $140,000. Expected beginning inventory on December 1 and ending inventory on December 31 are $90,000 and $120,000, respectively. If cost of goods sold averages 88% of sales, what are budgeted sales for December? Beginning Inventory + Purchases – Ending Inventory = COGS COGS / 88% = Sales 90000 + 140000 – 120000= 110,000 110,000 / 88%= 125000 - Willard's Department Store has budgeted cost of goods sold of $42,000 for its men's shorts in March. Management also wants to have $7,600 of men's shorts in inventory at the end of March to prepare for the summer season. Beginning inventory of men's shorts for March is expected to be $5,500. What dollar amount of men's shorts should be purchased in March? COGS + Ending Inventory – Beginning Inventory = Purchases 42000+7600-5500= 44100 - Goddard's Department Store has budgeted cost of goods sold of $44,000 for its men's shorts in March. Management also wants to have $8,000 of men's shorts in inventory at the end of March to prepare for the summer season. Beginning inventory of men's shorts for March is expected to be $5,500. What dollar amount of men's shorts should be purchased in March? COGS + Ending Inventory – Beginning Inventory = Purchases 44000+8000-5500 = 46500 - Sam's Toys budgeted sales of $300,000 for the month of November and cost of goods sold equal to 80% of sales. Beginning inventory for November was $50,000 and ending inventory for November is estimated at $55,000. How much are the budgeted purchases for November? COGS + Ending Inventory – Beginning Inventory = Purchases 300000 * 80% = 240000 240000 + 55000 – 50000 = 245000 - At the beginning of the year, Patio Living Corporation has 550 planters in inventory. The company plans to sell 5,200 planters during the year and wants to have 1,200 planters in inventory at the end of the year. How many planters must Patio Living Corporation produce during the year? Sales + Ending – Beginning 5200 + 1200 – 550 = 5850 - Totz Company produces jump ropes. Totz Company has the following sales projections for the upcoming year: First quarter budgeted jump rope sales in units 21,000 Second quarter budgeted jump rope sales in units 35,000 Third quarter budgeted jump rope sales in units 22,000 Fourth quarter budgeted jump rope sales in units 30,000 Inventory at the beginning of the year was 4,200 jump ropes. Totz Company wants to have 20% of the next quarter's sales in units on hand at the end of each quarter. How many jump ropes should Totz Company produce during the first quarter? Sales 2nd Qtr = 35000 * 20% = 7000 (Ending Inv) First Qtr = 21000 + 7000 – 4200 = 23,800 - Daisy Company manufactures dog collars. The following selected data relates to Daisy Company's budgeted sales and inventory levels of the dog collars for the upcoming quarter: October expected unit sales 2,000 November expected unit sales 2,600 December expected unit sales 2,200 October desired ending unit finished goods inventory 850 November desired ending unit finished goods inventory 720 December desired ending unit finished goods inventory 520 How many dog collars should Daisy Company produce in November? Sales + Ending – Beginning 2600 + 720 – 850 = 2470 - Beloved Baby Company manufactures and sells children's strollers. Each stroller requires eight screws. For September, Beloved Baby Company will begin September with 380 screws in its beginning inventory. Beloved Baby Company has budgeted stroller sales of 530 strollers, while 570 strollers are scheduled to be produced. How many screws should Beloved Baby Company purchase for September? Answer: Production 570 × 8 = 4,560 - 380 (BI) = 4,180 - Mighty Corporation manufactures end tables. Each end table requires 0.5 direct labor hours in its production. Mighty Corporation has a direct labor rate of $15 per direct labor hour. The production budget shows that Mighty Corporation plans to produce 1,000 end tables in March and 1,100 end tables in April. What is the total combined direct labor cost that should be budgeted for March and April? March production 1,000 + April production 1,100 Total 2,100 2100 × 0.5 = 1,050 hours × $ 15 = $ 15,750 - A cash collections budget is focused on the timing of cash receipts. - A company's plan for purchases of property, plant, equipment, and other long-term assets is part of the budgeted balance sheet. - The cash budget is prepared before the budgeted balance sheet is prepared. - The cash budget helps managers determine whether or not the company will need financing in a given month. - The Cash Budget details as to how the company expects to go from the beginning cash balance to the desired ending cash balance - A company sells goods and offers credit terms of "net 30 days." What does this mean for the company that sold the goods? The customer has up to 30 days to pay back the seller for the goods purchased without penalty. - Which of the following items would be shown on a cash payments budget? Cash dividends - Which of the following types of cash outlays has its own budget? Capital expenditures - All of the following are shown on the combined cash budget: projected cash balance at the end of the month. projected cash collections and cash payments. projected borrowings and repayments. - A company should include cash to be collected in that month regardless of when the sale was made when projecting cash receipts for a given month. - Financial budget is a budget that projects cash inflows and outflows and the end of period budgeted balance sheet. - The final step in the preparation of the financial budget is the preparation of the Budgeted Balance Sheet - Financial Budgets include the capital expenditures budget and the cash budgets. It projects a budgeted balance sheet as well as the collection and payment of cash. - The capital expenditure/cash/ budgeted balance sheet budget is part of the financial budgets. - Capital expenditures budget is a company's plan for purchases of property, plant and equipment, and other long-term assets - The sensitivity analysis technique asks what a result will be if a predicted amount is not achieved or if an underlying assumption changes. - All of the following are considered when preparing the cash budget: payments for inventory, cash receipts from customers, cash payments to suppliers. - Merchandisers use a "cost of goods sold, inventory, and purchases" budget to calculate the amount of merchandise to purchase. - Merchandising companies prepare sales, cash, and operating expense budgets. - Manufacturing, merchandising, and service companies prepare operating expense budgets. - Merchandising companies do not prepare a direct materials budget. - Which of the following types of companies use a direct materials budget? Manufacturing - Which of the following types of companies would combine cost of goods sold, inventory, and purchases into one budget? Merchandising - Which of the following types of companies use a sales budget? Manufacturing, Merchandising, Service. - Which of the following types of companies use an operating expense budget? Manufacturing, Merchandising, Service. - Which of the following types of companies use a capital expenditures budget? Manufacturing, Merchandising, Service. - The format of the "cost of goods sold, inventory, and purchases" budget is as follows: cost of goods sold + desired ending inventory - beginning inventory. - Service companies do not prepare a cost of goods sold, inventory, and purchases budget. - All of the following budgets are prepared by merchandising companies except DM - COD sales “Collect on Delivery” - Safety stock is the inventory that is kept on hand in case demand is higher than predicted or the problems in the factory slow production. Example: Tucson expects to sell 30,000 cases of chips in January at a price of $20 per case, so the estimated sales revenue of January is as follows: 30,000 * 20 = 600,000 Example: Tucson wants to maintain an ending inventory equal to 10% of the next month’s expected sales (20,000 cases in Feb). Thus, the total number of cases needed in January is? 30,000 + (10%*20,000) = 32,000 total cases needed Example: Since Tucson desires ending inventory to be 10% of the next month’s sales, managers expected to have 10% of January’s sales on hand on December 31st, which becomes the beginning balance on January 1st: 10% * 30000 cases = 3,000 cases in the beginning inventory on January 1st Example: By subtracting what the company already has in stock at the beginning of the month from the total units needed, the company is able to calculate how many units to produce: 32,000 cases needed – 3,000 cases in beginning inventory = 29,000 cases to produce - DIRECT MATERIALS BUDGET formula: Quantity DM needed for production + Desired DM Ending Inv = Total Quantity of DM needed – DM Beginning Inventory = Quantity DM to Purchase Example: Tucson only direct material is masa harina, the special corn flour used to make chips. Each case of chips requires 5 pounds of this corn flour. Therefore, the quantity of DM needed for January production is? 29,000 cases to be produced * 5 pounds per case = 145,000 Example: Tucson wants to maintain an ending inventory of DM equal to 10% of the materials needed for next month’s production (102500 required in February) 145,000 + (10% * 102,500) = 155,250 total pounds needed Example: Tucson expects to have 10% of the materials needed for Januar’s production in stock on December 31st, which becomes the opening balance on January 1st: 10% * 145,000 pounds = 14,500 pounds in beginning inventory Example: By subtracting what the company already has in stock at the beginning of the month from the total quantity needed, the company is able to calculate the quantity of DM it needs to purchase: 155,250 pounds needed – 14,500 pounds in beginning inventory = 140,750 pounds to purchase If Tucson can buy the flour in bulk for $1.50 per pound 140,750 * 1.50 = 211,125 - DL BUDGET formula: Units to be Produced * DL Hours per Unit = Total DL Hours Required * DL Cost per Hour = Total DL Cost Example : Assume each case requires only 0.05 of an hour. Direct laborers are paid $22 per hour. Thus, the direct labor cost for January is projected to be as follows: 29,000 cases * 0.05 hours per case = 1,450 hours required * $22 per hour = $31,900 - COGS = Number of Unit Sales * Manufacturing Cost Per Unit - Sensitivity Analysis is a what-if technique that asks what a result will be fi a predicted amount is not achieved or if an underlying assumption changes. - Flexible Budgets are budgets prepared for different volumes of activity. - Line of Credit is a lending arrangement from a bank in which a company is allowed to borrow money as needed, up to a specified maximum amount, yet only pay interest on the portion that is actually borrowed until it is repaid. - Participative Budgeting is budgeting that involves the participation of many levels of management. - Zero-based budgeting is a budgeting approach in which managers begin with a budget of zero and must justify every dollar put into the budget CHAPTER 10 - Companies that decentralize split their operations into different divisions or operating units. Only top management can decentralize, not small companies. - Decentralization may be based on: Geographic Area, Product Line, Distribution Channel, Customer Base, and Business Function. - Decentralization allows top management to concentrate on long-term strategic planning. - Decentralization allows top management to hire workers with expert knowledge for each business unit. - Decentralization may duplicate a company's costs since each business unit may, for example, have its own purchasing department. - Advantages of Decentralization: Frees Top Managements Time, Encourages Use of Expert Knowledge, Improves Customer Relations, Provides Training. Improves Motivation and Retention - Disadvantages of Decentralization: Potential Duplication of Costs and Potential Problems Achieving Goal Congruence or Unit managers may not understand the big picture of the company. - Goal Congruence occurs when the goals of the segment managers align with the goals of top management. - Goal incongruence frequently exists in decentralized organizations. - Responsibility Center is a part of an organization whose manager is accountable for planning and controlling certain activities. A part, segment, or subunit of a company whose manager is accountable for specified activities. Responsibility centers are Cost Centers, Profit Centers and Investment Centers. - Responsibility Accounting is a system for evaluation or comparing the performance of each responsibility center and its managers. - Responsibility accounting performance reports capture the financial performance of cost, revenue and profit centers. - Cost Center includes managers that are accountable for costs only. Manufacturing operations such as the Frito-Lay plant in Casa Grande, Arizona, are cost centers. The plant manager is not responsible for generating revenues because he or she is not involved in the selling of the product. They just control the cost by comparing actual cost to budgeted costs. Examples of Cost Centers: *The accounting department for a convenience store chain is likely to be considered a cost center. *The human resources department for Kohl's Department Stores would most likely be classified as a cost center. *The maintenance department at Continental Airlines *The security department for a department store chain *The human resources department for a steel manufacturer *The production line at Morningstar Farms * Honda's East Liberty Auto Plant where Honda cars are built * The manager of the accounting department at Adidas * The manager of the truck maintenance department at FedEx - Revenue Center includes managers that are accountable primarily for revenues. Many times, revenue centers are sales territories such as geographic areas within the country. Managers of revenue centers may also be responsible for the costs of their own sales operations. - Examples of Revenue Centers: *The reservations department for a car rental chain * The central reservation office at MegaBus * The regional sales department for Xerox copiers * The manager of the Northeast sales region at General Mills * The subscription sales manager for The New York Times - Revenue center performance reports are reports that list variances. - Profit Center or Product Lines includes managers that are accountable for both revenues and costs, and therefore profits. Examples of a Profit Center: *The convenience store owned by a national convenience store chain. *An amusement park's games department, which reports revenues and expenses. * A product line at PepsiCo (such as the Pepsi Max product line) * The Corn Flakes product line at Kellogg * The manager of a local CVS drugstore * The store manager for the Dick's Sporting Goods location in Columbus, Ohio. - Investment Center includes managers are responsible for (1) generating revenue, (2) controlling costs, and (3) efficiently managing the division’s assets. They are generally large divisions of a corporation. PepsiCo has 6 divisions - Most companies consider divisions to be investment centers. - The duties of an investment center manager are similar to those of a CEO. - EXAMPLES of Investment Centers: *Lubrizol is a chemical company that specializes in producing lubricants. Lubrizol was acquired in 2011 for $9 billion by investment holding company Berkshire Hathaway. Lubrizol is likely to be classified as an investment center. *The Crest division of Procter & Gamble. *Pizza Hut, a division of Yum! Brands. *The manager of the corporate division of Anthropologie (a retail clothing chain) *The CEO of Banana Republic, a division of The Gap, Inc. * The manager of the Walt Disney World Studios (a corporate division) - The success of an investment center is measured not only by its income, but also by relating that income to its invested capital. - Management by exception directs management's attention to important differences between actual and budgeted amounts / the practice of directing executive attention to important deviations from budgeted amounts. - Management by exception is used to determine which variances to investigate. - Investigating significant variances from a budget to assign responsibility is an example of management by exception. - Performance Report compares actual revenues and expenses against budgeted figures. The difference between actual and budget is known as a variance. - Favorable Variance is one that causes operating income to be higher than budgeted. This occurs when actual revenues are higher than budgeted, or actual expenses are lower than budgeted. - Unfavorable Variance is one that causes operating income to be lower than budgeted. This occurs when actual revenues are lower than budgeted, or actual expenses are higher than budgeted. - Management by Exception is a technique managers use when analyzing performance reports. Means that managers will only investigate budget variances that are relatively large. - Segment Margin is the operating income generated by a profit or investment center before subtracting common fixed costs that have been allocated to the center. - Fixed Expenses are separated into two categories: Direct Fixed Expenses include those fixed expenses that can be traced to the profit center. Example: Ads for Tropicana orange juice. Common Fixed Expenses include those fixed expenses that cannot be traced to the profit center. - Return on Investment (ROI) measures the amount of income an investment center earns relative to the size of its assets. ROI = Operating Income/Total Assets - The use of return on investment (ROI) as a performance measure may lead managers to reject projects that would be profitable for the company as a whole. - Sales Margin focuses on profitability by showing how much operating income the division earns on every $1 of sales revenue. Sales Margin = Operating income / Sales - Sales margin is a component of the Return on Investment (ROI) calculation. - Capital Turnover = Sales / Total Assets - Residual Income determines whether the division has created any excess income above and beyond management’s expectations. Residual Income RI = Operating Income – Minimum Acceptable Income - Using residual income may cause a manager to reject a project that would be profitable for the company as a whole. - Gross Book Value is the historical cost of the assets. - Net Book Value is the historical cost of the assets less accumulated depreciation. - Transfer Price is the price changed for the internal sale of product between two different divisions of the same company. - Flexible Budget is a budget prepared for a different level of volume than that which was originally anticipated. A flexible budget is a budget prepared for multiple volume levels. Managers use them to help plan for uncertainties. - In a flexible budget, total fixed costs do not change as production volume changes. - The flexible budget total cost formula applies only to a specific relevant range. - A static budget is prepared for only one level of sales activity. - Master Budget Variance the different between the actual revenue and expenses and the master budget. It’s the result of an “apples to oranges” comparison. - Volume Variance is the difference between master budget and flexible budget. - Flexible Budget Variance is the different between flexible budget and actual results. Example is: The performance evaluation of cost centers, profit centers. - Sales Volume Variance is the difference in dollars between amounts in the static budget and the flexible budget. - Lag Indicators are financial performance measures. - Lead Indicators are performance measures that predict future performance. - Balanced Scorecard was introduced by Robert Kaplan and David Norton. It recognizes that management must consider both financial performance measures and operational performance measures when judging the performance of a company and its segments. - Customer satisfaction, operational efficiency, and employee excellence are often measured as part of the balanced scorecard approach. - The ultimate purpose of the balanced scorecard is to give management a balanced view of the company's performance. - Key Performance Indicators (KPIs) are summary performance metrics, to assess how well a company is achieving its goals. - Performance Scorecard or Performance Dashboard is a report that allows managers to visually monitor and focus on managing the company’s key activities and strategies as well as business risk. - Managers must continually attempt to increase profits through the following: Increasing Revenue, Controlling Cost, Increasing Productivity. - Customers are typically concerned with four product or service attributes: Price, Quality, Sales Service, Delivery Time - Which of the following causes the difference between amounts in the static budget and the flexible budget for a revenue center? The number of units sold differs from planned sales levels. - The four perspectives of the balanced scorecard include all of the following: financial, customer, learning and growth. - The number of on-time deliveries would be an example of measuring which perspective? Customer - Employee satisfaction would be an example of measuring which perspective? Learning and growth - The number of repeat customers would be an example of measuring which perspective? Customer - The number of new services offered during the period would be an example of measuring which perspective? Learning and growth - Company growth rates (compared to industry growth rates) would be an example of measuring which perspective? Learning and growth - The number of rework units would be an example of measuring which perspective? Internal business - The results of a customer survey about customer experiences with the company's services would be an example of measuring which perspective? Customer - Total hours of continuing professional education taken by employees would be an example of measuring which perspective? Learning and growth - The number of new products developed would be an example of measuring which perspective? Internal business - The percentage of market share would be an example of measuring which perspective? Customer - The percentage of products with schematics and detailed operating instructions available within the company's information system for use by customer service representatives would be an example of measuring which perspective? Internal business - The number of defects found during the manufacturing process would be an example of measuring which perspective? Internal business - The financial perspective from the balanced scorecard helps managers answer the question, "How do we look to shareholders?" - The learning and growth perspective from the balanced scorecard focuses on continuing to improve and create value. - The customer perspective from the balanced scorecard focuses on determining if customers are satisfied. - The learning and growth perspective from the balanced scorecard focuses on determining the company's "climate for action." - Return on investment and revenue growth would be examples of financial perspective - The number of employee suggestions implemented and percentage of the sales force with access to real-time inventory levels would be examples of the learning and growth perspective - The number of warranty claims would be an example of the internal business perspective. - Customer satisfaction ratings would be an example of the customer perspective - Cash flows from operations and gross margin growth would be examples of the financial perspective - New product development time would be an example of the internal business perspective.