Question 1

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

Accepted Answer

The financial perspective of the balanced scorecard focuses on the financial outcomes of the company. It aims to increase company profits through increasing revenue growth and productivity. The other three perspectives (customer, internal business, and learning and growth) focus on different areas such as customer satisfaction, internal processes, and employee development, respectively.

Question 2

The balanced scorecard is a performance evaluation system that requires management to consider financial measures of performance,but not nonfinancial measures.

Accepted Answer

The statement is false. The balanced scorecard requires management to consider both financial and nonfinancial measures of performance.

Question 3

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 a failure to meet quality standards, not the opposite.

Question 4

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

Accepted Answer

A company's "climate for action" refers to its corporate culture that encourages communication, change, and growth. It fosters an environment where employees are empowered to take action and make decisions that benefit the company. This type of culture promotes innovation and creativity and creates a positive work environment where employees feel valued and supported.

Question 5

Uniox,Inc.intends to increase its profits by 50% in the next fiscal year.Which of the following is most likely to be a lag indicator in Uniox's performance report?

Accepted Answer

Return on investment is a lagging indicator because it reflects the company's historical performance and takes time to calculate. It is not an immediate indicator of the company's current performance or future success. The other options (B, C, D) are all leading indicators because they reflect the company's current performance and can be used to predict future success.

Question 6

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

Accepted Answer

Market share and on-time deliveries are both indicators of how well a company is meeting customer needs and expectations, making them part of the customer perspective in the Balanced Scorecard framework.

Question 7

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

Accepted Answer

Production cycle time directly affects the company's ability to make on-time deliveries. If the production cycle time is too long, it may delay the delivery schedule, resulting in a delay in meeting customer demands. The other options (A, B, and C) do not have a direct impact on the company's ability to make on-time deliveries.

Question 8

The balanced scorecard focuses only on lead indicators,because lag indicators are not important for performance evaluation.

Accepted Answer

The balanced scorecard takes into account both lead and lag indicators, as both are important for evaluating performance. Lead indicators are predictive measures that can help to drive future performance, while lag indicators show the results of past performance. By looking at both types of measures, organizations can take proactive steps to improve performance and achieve their strategic objectives.

Question 9

Madsen,Inc.intends to increase its profits by 50% in the next fiscal year.Which of the following is most likely to be a lead indicator in Madsen's performance report?

Accepted Answer

The answer of Madsen,Inc.intends to increase its profits by 50%...

Question 10

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

Accepted Answer

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

Question 11

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

Accepted Answer

The number of new products developed is commonly used as a KPI to assess the innovation process. This indicator measures the success and effectiveness of the organization's efforts to introduce new products to the market, which is a crucial aspect of innovation. The other options listed do not directly relate to assessing the organization's innovation process.

Question 12

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?"

Accepted Answer

The learning and growth perspective of the balanced scorecard focuses on the development of employees and the creation of a culture of continuous improvement, which would enable management to answer the question of how to continue improving and creating value. The financial, customer, and internal business perspectives are important for measuring current performance and identifying areas that need improvement, but they do not specifically address the question of how to continue improving and creating value.

Question 13

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?

Accepted Answer

The financial perspective is focused on financial measures such as profitability, return on investment, and cash flow, which are important to investors and creditors.

Question 14

Key performance indicators (KPIs)are summary performance measures that help managers assess whether the company is achieving its goals.

Accepted Answer

KPIs are indeed summary performance measures that assist managers in determining if the company is achieving its objectives.

Question 15

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

Accepted Answer

Return on investment (ROI) is a key financial performance indicator in the balanced scorecard. It reflects the profitability and financial performance of the organization. The other options, such as hours of employee training, number of warranty claims, and percentage of market share, are more related to internal processes, customer satisfaction, and market performance, respectively, and are typically considered as performance indicators in other perspectives of the balanced scorecard.

Question 16

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

Accepted Answer

Sales revenue growth, gross margin growth, and return on investment are financial indicators that reflect the organization's financial performance. Therefore, they fall under the financial perspective of the Balanced Scorecard.

Question 17

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

Accepted Answer

The learning and growth perspective of a balanced scorecard focuses on the organization's ability to learn and innovate to support long-term growth and improvement. Employee satisfaction falls under this perspective as it reflects the organization's ability to develop and maintain a skilled and motivated workforce, which is essential for achieving long-term success.

Question 18

A high rate of employee turnover indicates that ________.

Accepted Answer

A high rate of employee turnover indicates that employees of the organization leave their jobs frequently. This could be due to various factors such as poor work culture, lack of growth opportunities, inadequate compensation, etc. High turnover is generally not a positive sign for an organization as it leads to increased recruitment and training costs and can also negatively impact productivity and morale.

Question 19

The balanced scorecard system requires management to consider ________.

Accepted Answer

The balanced scorecard system requires management to consider both financial and operational performance measures. The four perspectives of the balanced scorecard are financial, customer, internal processes, and learning and growth. Each perspective contains both financial and non-financial measures, allowing for a more well-rounded evaluation of organizational performance.

Question 20

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

Accepted Answer