Which of the following statements about the balanced scorecard approach is true?
A) It helps management focus on only non-financial measures of performance.
B) It helps management focus on critical success factors which may be financial and non-financial in nature.
C) It helps management ignore short-term operating performance in favour of long-term operating performance.
D) It helps management focus on only financial measures of performance.

Question

Quizplus · Accepted Answer

The balanced scorecard approach helps management focus on critical success factors which may be financial and non-financial in nature. It is a framework that considers both financial and non-financial measures of performance to ensure that the organization is creating value and achieving its strategic objectives. It does not ignore short-term operating performance, but rather focuses on measures that drive long-term success. Therefore, options A, C, and D are incorrect.

Which of the Following Statements About the Balanced Scorecard Approach