Baxter Invested $50,000 in an Activity in 2013 $\begin{array}{rr}\text { Year }&\text { Gain(Loss) }\\2015 & (\$ 25,000 \\2016 & 10,000 \\2017 & 10,000\end{array}$

question 21

Multiple Choice

Baxter invested $50,000 in an activity in 2013.At the beginning of 2015,Baxter's at-risk amount was $10,000.Baxter's share of losses from the activity were as follows: $\begin{array}{rr}\text { Year }&\text { Gain(Loss) }\\2015 & (\$ 25,000 \\2016 & 10,000 \\2017 & 10,000\end{array}$ If you ignore the passive loss rules,how much income/loss will Baxter have from the activity in 2017?

• A)$0.
• B)$5,000.
• C)$10,000.
• D)$15,000.

Identify the limitations of traditional accounting systems in performance measurement.

Acknowledge non-financial measures as predictors of future financial performance.

Understand the "cascade down" requirement in the balanced scorecard.

Grasp the fundamental characteristics of a balanced scorecard and its implementation.

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Definitions:

Factory Costs

The total expenses incurred in the manufacturing process, including labor, materials, and overhead costs.

Economies of Scale

Advantages in terms of costs that companies realize by enlarging their scale of operations, with the unit cost of production generally falling as the scale increases.

Total Product

The overall quantity of output that a firm produces, usually within a given period of time, based on the input of resources.

Marginal Product

The additional output that is produced by employing one more unit of a particular input, such as labor or capital.