Which of the following will least likely be an indicator of success within the financial perspective of the balanced scorecard?
A) Increasing ROI
B) Decreasing operating costs
C) Decreasing residual income
D) Increasing segment margin

Question

Quizplus · Accepted Answer

Decreasing residual income is not an indicator of success within the financial perspective of the balanced scorecard as residual income represents the amount of income that remains after deducting the cost of capital from the net operating income. A decrease in residual income may indicate that the cost of capital is higher than the net operating income or that the company is investing in projects that do not generate expected returns. Increasing ROI, decreasing operating costs, and increasing segment margin are all indicators of financial success as they represent higher profitability and efficiency.

Which of the Following Will Least Likely Be an Indicator