What is one advantage that the balanced scorecard has over traditional control processes that rely solely on financial measures?
A)The balanced scorecard encourages control delegation.
B)The balanced scorecard eliminates problems with regulation costs.
C)The balanced scorecard minimizes the chances of suboptimization.
D)The balanced scorecard allows companies to determine the ideal control methods.

Question

What is one advantage that the balanced scorecard has over traditional control processes that rely solely on financial measures?
A)The balanced scorecard encourages control delegation. 
B)The balanced scorecard eliminates problems with regulation costs. 
C)The balanced scorecard minimizes the chances of suboptimization. 
D)The balanced scorecard allows companies to determine the ideal control methods.

Quizplus · Accepted Answer

The balanced scorecard takes into account multiple perspectives beyond just financial measures, such as customer satisfaction, internal processes, and learning and growth. By considering these other factors, the chances of suboptimization (focusing too narrowly on one area to the detriment of others) are minimized. This allows companies to make more balanced decisions in achieving their strategic goals.

What Is One Advantage That the Balanced Scorecard Has Over