Question 1

State the strategy for each of the perspectives of the balanced scorecard.
 $\begin{array}{|l|c|}
\hline \text { Balanced scorecard }\
{ \text { perspective } } & ~~~~~~~~~~~~\text { Strategy }~~~~~~~~~~~~~~~~~ \
\hline \text { Financial } & \\
\hline \text { Customer } & \\
\hline \text { Internal business } & \\
\hline \text { Learning and } & \
\text { growth } & \
\hline
\end{array}$

Accepted Answer

The answer of State the strategy for each of the...

Question 2

The balanced scorecard system requires management to consider ________.
A)both financial and operational performance measures
B)only performance measures
C)only leading indicators
D)only financial and customer perspectives

Accepted Answer

The balanced scorecard system requires management to consider both financial and operational performance measures. The balanced scorecard approach involves considering multiple perspectives, including financial, customer, internal processes, and learning and growth, to ensure that performance is evaluated comprehensively.

Question 3

Which of the following perspectives of the balanced scorecard focuses on the increase of company profits through increasing revenue growth and productivity?
A)financial
B)customer
C)internal business
D)learning and growth

Accepted Answer

The financial perspective of the balanced scorecard focuses on increasing company profits, which includes increasing revenue growth and productivity.

Question 4

How is the use of a balanced scorecard as a performance evaluation system helpful to companies?

Accepted Answer

The answer of How is the use of a balanced...

Question 5

The level of employee satisfaction is a key performance indicator of the ________ perspective of a balanced scorecard.
A)financial
B)learning and growth
C)internal business
D)customer

Accepted Answer

The learning and growth perspective of a balanced scorecard is focused on the company's ability to innovate and improve, which includes employee training and development. Employee satisfaction plays a significant role in achieving this objective. Thus, B is the correct answer. The financial perspective focuses on profitability and financial performance, the internal business perspective measures the efficiency of business operations, and the customer perspective assesses how well the company is satisfying customer needs.

Question 6

Which of the following affects the company's ability to make on-time deliveries?
A)return on investment
B)product's price
C)warranty claims
D)production cycle time

Accepted Answer

Production cycle time refers to the time it takes for a product to move through the production process from start to finish. If the production cycle time is lengthy, this can delay delivery times since it will take longer to manufacture the product. Therefore, production cycle time affects a company's ability to make on-time deliveries. The other options listed do not directly impact delivery times.

Question 7

Percentage of market share and rate of on-time deliveries are indicators of the ________ perspective.
A)quality management
B)internal business
C)customer
D)learning and growth

Accepted Answer

Percentage of market share and rate of on-time deliveries are both metrics that reflect the customer perspective, as they both measure how well the organization is meeting the needs and expectations of its customers. Quality management and internal business perspectives may also be relevant to tracking delivery rates, but market share is primarily a customer-focused metric. Learning and growth perspective is not related to these metrics.

Question 8

Which of the following is a key performance indicator of the internal business perspective of the balanced scorecard?
A)number of units produced per hour
B)employee turnover
C)cash flow
D)number of cross-trained employees

Accepted Answer

The answer of Which of the following is a key...

Question 9

Which of the following four perspectives of the balanced scorecard enables management to answer the question,"How can we continue to improve and create value?"
A)financial
B)customer
C)internal business
D)learning and growth

Accepted Answer

The learning and growth perspective of the balanced scorecard focuses on employee training, innovation, and infrastructure improvements. By focusing on this perspective, management can identify areas for improvement and invest in the development of their employees, technology, and processes, ultimately creating value for the organization.

Question 10

The financial perspective of the balanced scorecard is concerned with ________.
A)how customers perceive the business and its products and services
B)the company's ability to improve and create value
C)which business processes the company must excel in to meet expectations
D)whether investors and creditors view the company favorably

Accepted Answer

The financial perspective of the balanced scorecard is focused on measuring the financial performance of the company and how it is viewed by investors and creditors. This perspective includes metrics such as revenue growth, profitability, return on investment, and shareholder value.

Question 11

A company uses a balanced scorecard and has established a key performance indicator for product quality.If the actual warranty claims are higher than expected,there is an indication that the quality standards have been met.

Accepted Answer

If the actual warranty claims are higher than expected, it indicates that the quality standards have not been met, as there are more defects in the product that are leading to customer complaints and warranty claims.

Question 12

A high rate of employee turnover indicates that ________.
A)employees of the organization leave their jobs frequently
B)pay packages of employees are at par with that of the industry
C)the employee retention ratio is also high
D)employees also participate in the decision-making process

Accepted Answer

A high rate of employee turnover indicates that employees of the organization leave their jobs frequently, which could be due to various reasons such as dissatisfaction with the job, pay, culture, etc.

Question 13

Which of the following is a key performance indicator of the financial perspective in a balanced scorecard?
A)hours of employee training
B)number of warranty claims
C)percentage of market share
D)return on investment

Accepted Answer

Return on investment is a key performance indicator of the financial perspective in a balanced scorecard. It measures the profitability of the organization and helps to understand if the investments made by the company are generating adequate returns.

Question 14

Which of the following is a key performance indicator of the internal business perspective in a balanced scorecard?
A)hours of employee training
B)number of warranty claims received
C)percentage of market share
D)return on investment

Accepted Answer

The answer of Which of the following is a key...

Question 15

One part of the balanced scorecard helps management answer the question,"How do we look to investors and creditors?" Which of the four perspectives is being described with this statement?
A)financial
B)customer
C)internal business
D)learning and growth

Accepted Answer

The financial perspective of the balanced scorecard is focused on financial outcomes and measures, making it the appropriate perspective for answering the question of how the company appears to investors and creditors.

Question 16

The balanced scorecard ________.
A)incorporates both financial and operational performance measures
B)does not consider operational performance measures
C)evaluates performance based on organizational participation in improving processes
D)treats financial indicators as the sole measurement of performance

Accepted Answer

The balanced scorecard incorporates both financial and operational performance measures, as well as measures related to customer satisfaction and learning and growth, in order to provide a more comprehensive and well-rounded view of organizational performance.

Question 17

A company's "climate for action" is a corporate culture ________.
A)that encourages communication,change,and growth
B)that is focused on strong,top-down command and control
C)that is aimed exclusively at period earnings
D)that discourages physical activity,sports,and recreation to improve employee health and morale

Accepted Answer

A climate for action corporate culture is one that encourages communication, change, and growth. It fosters an environment where employees are motivated and empowered to take action towards achieving the company's mission and goals. This type of culture is known to increase employee satisfaction and productivity. B, C, and D do not describe a climate for action culture.

Question 18

Which of the following internal business perspective key performance indicators (KPIs)is commonly used to assess the innovation process?
A)number of new products developed
B)number of warranty claims
C)employee turnover rate
D)rate of on-time deliveries

Accepted Answer

The number of new products developed is commonly used to assess the innovation process as it reflects the company's ability to come up with new and improved products to meet customer needs and stay competitive in the market. The other options do not directly relate to assessing the innovation process.

Question 19

Sales revenue growth,gross margin growth,and return on investment are the key performance indicators for the ________.
A)financial perspective
B)customer perspective
C)internal business perspective
D)learning and growth perspective

Accepted Answer

Sales revenue growth, gross margin growth, and return on investment are financial metrics that directly relate to a company's financial perspective.

Question 20

Which of the following is a key performance indicator of the customer perspective in a balanced scorecard?
A)defect rate
B)employee satisfaction
C)gross margin growth
D)number of repeat customers

Accepted Answer

Number of repeat customers is a key performance indicator of the customer perspective in a balanced scorecard as it reflects how satisfied customers are with the company's products or services, and their willingness to continue doing business with the company. Defect rate and gross margin growth are indicators of the internal business perspective, while employee satisfaction is an indicator of the learning and growth perspective.

Quiz 24: Responsibility Accounting and Performance Evaluation

The balanced scorecard system requires management to consider ________.

Which of the following perspectives of the balanced scorecard focuses on the increase of company profits through increasing revenue growth and productivity?

How is the use of a balanced scorecard as a performance evaluation system helpful to companies?

The level of employee satisfaction is a key performance indicator of the ________ perspective of a balanced scorecard.

Which of the following affects the company's ability to make on-time deliveries?

Percentage of market share and rate of on-time deliveries are indicators of the ________ perspective.

Which of the following is a key performance indicator of the internal business perspective of the balanced scorecard?

Which of the following four perspectives of the balanced scorecard enables management to answer the question,"How can we continue to improve and create value?"

The financial perspective of the balanced scorecard is concerned with ________.

A company uses a balanced scorecard and has established a key performance indicator for product quality.If the actual warranty claims are higher than expected,there is an indication that the quality standards have been met.

A high rate of employee turnover indicates that ________.

Which of the following is a key performance indicator of the financial perspective in a balanced scorecard?

Which of the following is a key performance indicator of the internal business perspective in a balanced scorecard?

One part of the balanced scorecard helps management answer the question,"How do we look to investors and creditors?" Which of the four perspectives is being described with this statement?

The balanced scorecard ________.

A company's "climate for action" is a corporate culture ________.

Which of the following internal business perspective key performance indicators (KPIs) is commonly used to assess the innovation process?

Sales revenue growth,gross margin growth,and return on investment are the key performance indicators for the ________.

Which of the following is a key performance indicator of the customer perspective in a balanced scorecard?