The Balanced Scorecard: A Tool to Implement Strategy 191

Improvements in these customer measures are lending indicators of superior finncinl

performance
Internal Business Process Perspective
(1) Manufacturing quality
(2) New product features added
(3) Order delivery time
Improvements in these measurcs arc expecled to result in more satisfied customers and
in turn superior financial performancc.
Learning and Growth Perspective
(1) Development time for designing new machines
(2) Improvements in manufacturing processes
(3) Employee education and skill levels
(4) Employee satisfaction
Jmprovements in these measures have a cause-and-cffect relationship with
improvements in internal business processes, which in turn lead to customer
satisfaction and financial performance.
3. Operating income for each year is as follows:
20X2 20X3
Revenue (P40,000 x 200; P42,000x 210) P8.000,000 P8,820,000
Costs
Direct materials costs (P8 x 300,000; 2,400,000 2,635,000
P8.50 x 310,000)
Manufacturing conversion costs 2,000,000 2,025,000
(P8,000 x 250; P8,100 x 250)
Selling &customer service costs 1,000,000 940,500
(P10,000x 100; P9,900 x 95) 1.200,000 1.212.000
Design costs (P100,000x 12; 6,812,500
P101,000 x 12) 6.600,000 P2.007,500
Total costsS P1400,000
Operating income P607,500 F
Change in operating income

cnned w th Cemsccne