The Balanced Scorecard Includes Both Leading and Lagging Indicators

question 125

Multiple Choice

The balanced scorecard includes both leading and lagging indicators.Which of the following correctly places each indicator on the spectrum of most leading to most lagging?

• A)Financial → Customer → Internal business process → Learning and growth
• B)Financial → Learning and growth → Internal business process → Customer
• C)Customer → Learning and growth → Internal business process → Financial
• D)Learning and growth → Internal business process → Customer → Financial

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Definitions:

Price Index

A statistical measure that shows changes in the price level of a basket of goods and services over time, indicating the cost of living or inflation rate.

GDP Price Index

A comprehensive inflation measure of all goods and services included in the gross domestic product.

Final Goods

Products that are completed and ready for sale and consumption, as opposed to intermediate goods used in the production of another product.

Consumer Price Index

An index measuring the change in the price level of a basket of consumer goods and services purchased by households.