Balanced Scorecard quiz Managerial Accounting Quiz On Aug 18, 2024 Share /7 1234567 Balanced Scorecard 7 questions in 7 minutes Pass Score 70% 1 / 7 The balanced scorecard provides an action plan for achieving competitive success by focusing management attention on critical success factors. Which one of the following is notone of the perspectives on the business into which critical success factors are commonly grouped in the balanced scorecard ? Financial performance Employee innovation and learning Competitor business strategies Internal business processes A typical balanced scorecard classifies critical success factors and measures into one of four perspectives on the business: financial, customer satisfaction, internal business processes, and learning and growth 2 / 7 Two examples of the learning and innovation measures of a balanced scorecard are : Employee turnover rate and number of internal process improvements Employee training hours and product defect rates Number of employee suggestions and finished products per day per employee Employee promotion rate and number of environmental incidents Learning and growth (innovation) critical success factors may include the development of new products, promptness of their introduction, human resource development, morale, and the competence of the work force. Both employee turnover rates and the number of internal process improvements are appropriate measures 3 / 7 Which one of the following statements best describes the definition of critical success factors ? The aspects of a business that are focused on measuring key costs The key nonfinancial performance indicators on a balanced scorecard Financial measures that track a company’s competitive performance Financial and nonfinancial aspects of performance that are essential to have a competitive advantage Critical success factors are specific, measurable financial and nonfinancial elements of a firm’s performance that are vital to its competitive advantage 4 / 7 On a balanced scorecard, which of the following would not be an example of a customer satisfaction measure ? Economic value added Customer retention Response time Market share Customer satisfaction measures include market share, retention, response time, delivery performance, number of defects, and lead time. Economic value added, or EVA®, is a profitability measure 5 / 7 Which one of the following statements about a balanced scorecard is incorrect ? It is directly derived from the scientific management theories The notion of value chain analysis plays a major role in the drawing up of a balanced scorecard It seeks to address the problems associated with traditional financial measures used to assess performance It relies on the perception of the users with regard to service provided Subjective measures, such as customer satisfaction, are imprecise. A high level of management judgment and intuition are required to successfully implement a balanced scorecard 6 / 7 Using the balanced scorecard approach, an organization evaluates managerial performance based on : Multiple nonfinancial measures only A single ultimate measure of operating results, such as residual income Multiple financial measures only Multiple financial and nonfinancial measures The trend in managerial performance evaluation is the balanced scorecard approach. Multiple measures of performance permit a determination as to whether a manager is achieving certain objectives at the expense of others that may be equally or more important. These measures may be financial or nonfinancial and usually include items in four categories: profitability; customer satisfaction; innovation; and efficiency, quality, and time 7 / 7 On a balanced scorecard, which is more of an internal process measure than an external-based measure ? Profitability Cycle time Market share Customer satisfaction Cycle time is the manufacturing time to complete an order. Thus, cycle time is strictly related to internal processes. Profitability is a combination of internal and external considerations. Customer satisfaction and market share are related to how customers perceive a product and how competitors react Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback a balanced scorecarda balanced scorecard for measuring company performanceBalanced Scorecard
