In the following situation, identify whether the setting
is primarily financial accounting or managerial
accounting.
BNSF Railway was experiencing an increase in
demand for information technology resources even though, overall,
the company’s business wasn’t growing. In an effort to understand
the technology group’s operations, Chief Information Officer Jeff
Campbell developed a balanced scorecard for the IT group. Among the
measures he tracked were monthly performance against operating
budget, percentage of projects delivered on time, employee
absenteeism, and internal rate of return on IT projects. Now
everyone in the company understands how much it costs to provide
the technology support for a particular business application.
(Source: Meredith Levinson, “Why You Keep Score,” CIO.com, July 19,
2007,
http://www.cio.com/article/124652/CASE_STUDY_3_Why_You_Keep_Score)
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A) The focus is primarily Financial |
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B) The Focus is Primarily Managerial





