A comprehensive management control system that balances traditional financial measures with operational measures relating to a company's critical success factors is called a(n)
A) economic value-added system.
B) activity-based costing system.
C) market value-added system.
D) balanced scorecard.
E) open-book management system.

Question

Quizplus · Accepted Answer

A balanced scorecard is a management control system that includes traditional financial measures alongside non-financial measures related to a company's critical success factors. This helps provide a comprehensive view of a company's performance and allows managers to make more strategic decisions. Economic value-added and market value-added systems are both financial measures on their own, while activity-based costing and open-book management systems are more specific tools that can be utilized within a broader management control system.

A Comprehensive Management Control System That Balances Traditional Financial Measures