Question 1

Which of the following statements about performance evaluation is true?

Accepted Answer

Combining financial and nonfinancial measures provides a more comprehensive view of organizational performance, as financial measures alone may not capture important aspects such as customer satisfaction or employee morale. However, it is important to carefully select a reasonable number of nonfinancial measures to avoid overwhelming and diluting the evaluation process.

Question 2

Managers consider a few general strategy types in their decision making processes, including I. Cost leadership
II. Product differentiation
III. Target costing

Accepted Answer

Cost leadership and product differentiation are two commonly used strategy types by managers. Target costing is a tool that can be used within either of these strategies to help achieve a specific cost or budget goal. Therefore, the best choice is A, as it includes the commonly used strategies of cost leadership and product differentiation.

Question 3

An organization's operating plans include all of the following except

Accepted Answer

The answer of An organization's operating plans include all of...

Question 4

Which of the following best describes the relationship between strategies and operating plans?

Accepted Answer

Strategies are typically broader and more long-term than operating plans. Once a strategy has been established, operating plans can be developed to implement and execute the strategy. Therefore, strategies lead to operating plans.

Question 5

Managers have traditionally relied on which of the following measures to evaluate performance?

Accepted Answer

Managers have traditionally relied on financial measures, such as profitability, return on investment, and revenue growth, to evaluate performance. These measures are tangible and easily quantifiable, making them a popular choice for assessing performance. However, there is growing recognition of the importance of nonfinancial measures, such as customer satisfaction, employee engagement, and environmental impact, in evaluating organizational performance.

Question 6

FPM Corporation's strategic plan includes the following statement: "We deliver high-quality and timely service to our internal and external customers." That statement is best described as a(n)

Accepted Answer

The statement is a mission statement because it outlines the purpose and values of the company.

Question 7

Analysis of the gaps between actual operations and performance objectives can be used to I. Compensate employees
II. Prepare financial statements
III. Improve future strategies

Accepted Answer

Analysis of the gaps between actual operations and performance objectives can help in improving future strategies as well as compensating employees, but it is not directly related to preparing financial statements. Therefore, option B is the best choice.

Question 8

Components of organizational strategy include

Accepted Answer

The answer of Components of organizational strategy include
...

Question 9

Balanced scorecards can improve communication and consensus throughout an organization.

Accepted Answer

Balanced scorecards provide a common language and framework for setting strategic goals and measuring progress. This can improve communication and consensus by ensuring that all departments and stakeholders are aligned and working toward the same objectives.

Question 10

Which of the following are inputs to the development of organizational strategy?

Accepted Answer

The development of organizational strategy is informed by the organization's vision, which outlines its goals and aspirations, and its core competencies, which are the unique capabilities that enable it to succeed in its chosen markets. Operating plans, which describe the specific actions the organization will take to achieve its goals, are not inputs to strategy development per se, but are rather the result of the strategy-setting process. Actual operations may inform the execution of the strategy, but are not inputs to its development.

Question 11

An organization's core competencies are related to its strengths relative to competitors. Those strengths can include I. Productivity and skills
II. Reputation and legal rights
III. Mission and core purpose

Accepted Answer

Core competencies refer to an organization's unique strengths that set it apart from competitors. Productivity and skills (I) can provide a competitive advantage because they enable the organization to produce goods or services more efficiently than competitors. Reputation and legal rights (II) can also be a source of competitive advantage as they provide protection and recognition for the organization's brand and products. Mission and core purpose (III) are important guiding principles for the organization but are not necessarily related to competitive strength.

Question 12

Nonfinancial measures include I. Cost variances
II. Defect rates
III. Customer satisfaction surveys

Accepted Answer

Nonfinancial measures are operational measures that aren't quantifiable in financial terms. Cost variances are financial measures, while defect rates and customer satisfaction surveys are nonfinancial measures. Therefore, options A and C are incorrect. All the three measures are mentioned in the question statement. Therefore, option D is incorrect as well. Hence, the correct answer is B, II and III only.

Question 13

Financial and nonfinancial indicators are used to assess organizational performance and effectiveness under which of the following approaches?

Accepted Answer

The balanced scorecard is a performance measurement framework that uses both financial and nonfinancial indicators to assess organizational performance and effectiveness.

Question 14

The primary aim of the balanced scorecard is to

Accepted Answer

The balanced scorecard is designed to translate a company's strategic objectives into a set of performance measures across different perspectives, ensuring alignment with the strategic plan.

Question 15

Balanced scorecards, when properly implemented, can guide managers in making more effective decisions.

Accepted Answer

Balanced scorecards provide a comprehensive view of an organization's performance across multiple dimensions, such as financial, customer, internal processes, and learning and growth. This holistic approach can help managers make better-informed decisions that align with the overall strategy and goals of the organization.

Question 16

Which of the following is a synonym for an organization's vision?

Accepted Answer

A) Purpose and ideology are synonyms for an organization's vision as they both refer to the organization's long-term aspirations and goals. Core competencies refer to the unique strengths and abilities of an organization, while organizational strategies and operating plans are specific methods and actions taken to achieve the vision and goals.

Question 17

Lack of senior management support is one of the major causes for failed balanced scorecard initiatives.

Accepted Answer

Lack of senior management support can lead to insufficient resources allocated to the initiative and lack of commitment from employees, ultimately leading to failure of the balanced scorecard implementation.

Question 18

The balanced scorecard approach to performance evaluation I. Is less time consuming and expensive than other approaches
II. Helps managers integrate strategies across divisions and functions
III. Assists managers in predicting possible future problems

Accepted Answer

The balanced scorecard approach helps managers integrate strategies across divisions and functions, as well as assists managers in predicting possible future problems. However, it is not necessarily less time consuming and expensive than other approaches. Therefore, options A and B are incorrect, and option D is too broad and encompasses all possible choices.

Question 19

An organizational vision is concerned with creating value for stakeholders, including I. The community and society
II. Employees and suppliers
III. Customers and owners

Accepted Answer

An organizational vision is all-encompassing and is concerned with creating value for all stakeholders. These stakeholders include the community and society, employees and suppliers, as well as customers and owners. Therefore, the best choice is D, which includes all the options.

Question 20

Financial measures used for organizational evaluation can pertain to I. Divisions
II. Product lines
III. Departments

Accepted Answer

Financial measures can be used to evaluate the performance of various aspects of an organization including its divisions, product lines, and departments. Therefore, options I, II, and III are all correct.

Quiz 16: Strategic Performance Measurement

Which of the following statements about performance evaluation is true?

Managers consider a few general strategy types in their decision making processes, including I. Cost leadership II. Product differentiation III. Target costing

An organization's operating plans include all of the following except

Which of the following best describes the relationship between strategies and operating plans?

Managers have traditionally relied on which of the following measures to evaluate performance?

FPM Corporation's strategic plan includes the following statement: "We deliver high-quality and timely service to our internal and external customers." That statement is best described as a(n)

Analysis of the gaps between actual operations and performance objectives can be used to I. Compensate employees II. Prepare financial statements III. Improve future strategies

Components of organizational strategy include

Balanced scorecards can improve communication and consensus throughout an organization.

Which of the following are inputs to the development of organizational strategy?

An organization's core competencies are related to its strengths relative to competitors. Those strengths can include I. Productivity and skills II. Reputation and legal rights III. Mission and core purpose

Nonfinancial measures include I. Cost variances II. Defect rates III. Customer satisfaction surveys

Financial and nonfinancial indicators are used to assess organizational performance and effectiveness under which of the following approaches?

The primary aim of the balanced scorecard is to

Balanced scorecards, when properly implemented, can guide managers in making more effective decisions.

Which of the following is a synonym for an organization's vision?

Lack of senior management support is one of the major causes for failed balanced scorecard initiatives.

The balanced scorecard approach to performance evaluation I. Is less time consuming and expensive than other approaches II. Helps managers integrate strategies across divisions and functions III. Assists managers in predicting possible future problems

An organizational vision is concerned with creating value for stakeholders, including I. The community and society II. Employees and suppliers III. Customers and owners

Financial measures used for organizational evaluation can pertain to I. Divisions II. Product lines III. Departments