KHD Industries includes, among others, the following measures in its integrated performance measurement system: operating income, cash flow from operations, customer satisfaction, customer retention, defect rate, number of suppliers, employee retention, and number of patents. KHD Industries seems to have adopted:
A) The balanced scorecard approach to performance measurement.
B) Economic value added to assess management performance.
C) Residual income to assess management performance.
D) Horizontal integration in its performance measurement system.

Question

Quizplus · Accepted Answer

The balanced scorecard approach includes financial measures (like operating income and cash flow from operations) and non-financial measures (like customer satisfaction, customer retention, defect rate, number of suppliers, employee retention, and number of patents) to provide a comprehensive view of an organization's performance.

KHD Industries Includes, Among Others, the Following Measures in Its