What Are the Four Different Perspectives Related to the Balanced

question 53

Essay

What are the four different perspectives related to the Balanced Scorecard and what does the Balanced Scorecard attempt to balance?

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Definitions:

Direct Labor

The wages or salaries paid to employees who are directly involved in the production of goods or services.

Conversion Costs

The combined costs of direct labor and manufacturing overheads, representing the expenses to convert raw materials into finished goods.

Factory Overhead Costs

Expenses related to the operation of a factory that are not directly linked to a specific product, such as maintenance, utilities, and salaries of supervisory staff.

Direct Material

The raw materials that are used directly in manufacturing a product and can be easily traced to the final product.