EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

1. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD 1. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
1. Both companies view training as important; both companies need to leverage technology to succeed in the marketplace; and both companies are concerned with minimizing defects. There are numerous differences between the two companies. For example, Applied Pharmaceuticals is a product-focused company and Destination Resorts International (DRI) is a service-focused company. Applied Pharmaceuticals’ training resources are focused on their engineers because they hold the key to the success of the organization. DRI’s training resources are focused on their front-line employees because they hold the key to the success of their organi-zation. Applied Pharmaceuticals’ technology investments are focused on supporting the innovation that is inherent in the product development side of the business. DRI’s technology investments are focused on sup-porting the day-to-day execution that is inherent in the customer inter-face side of the business. Applied Pharmaceuticals defines a defect from an internal manufacturing standpoint, while DRI defines a defect from an external customer interaction standpoint. Problem 10-20 (continued)