Managerial Accounting QuizBalanced Scorecard quiz 05/05/2026 1 min read Balanced Scorecard 7 questions in 7 minutes Pass Score 70% 1 / 7 Using the balanced scorecard approach, an organization evaluates managerial performance based on : Multiple financial and nonfinancial measures Multiple financial measures only Multiple nonfinancial measures only A single ultimate measure of operating results, such as residual income 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 2 / 7 Two examples of the learning and innovation measures of a balanced scorecard are : Employee turnover rate and number of internal process improvements Number of employee suggestions and finished products per day per employee Employee training hours and product defect rates 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 statementsbestdescribes the definition of critical success factors ? The aspects of a business that are focused on measuring key costs Financial measures that track a company’s competitive performance Financial and nonfinancial aspects of performance that are essential to have a competitive advantage The key nonfinancial performance indicators on a balanced scorecard 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 is more of an internal process measure than an external-based measure ? Cycle time Market share Customer satisfaction Profitability 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 5 / 7 Which one of the following statements about a balanced scorecard isincorrect? It seeks to address the problems associated with traditional financial measures used to assess performance It is directly derived from the scientific management theories It relies on the perception of the users with regard to service provided The notion of value chain analysis plays a major role in the drawing up of a balanced scorecard 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 On a balanced scorecard, which of the following wouldnotbe an example of a customer satisfaction measure ? Market share Customer retention Economic value added Response time 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 7 / 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 isnotone of the perspectives on the business into which critical success factors are commonly grouped in the balanced scorecard ? Competitor business strategies Employee innovation and learning Internal business processes Financial performance 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 Your score is LinkedIn Facebook Twitter VKontakte 0% Send feedback 🚀 Join Telegram Group 📢 Telegram Channel 📘 Facebook Group 👍 Facebook Page 📌 Pinterest
