How Does the Balanced Scorecard Help Organizations Deal with Unethical

question 110

Multiple Choice

How does the balanced scorecard help organizations deal with unethical behaviors of executives?

• A) It allows companies to deduct executive pay that exceeds $1 million.
• B) It ensures that by rewarding the achievement of a variety of goals, temptation on the executive's part to gain bonuses by manipulating data are reduced.
• C) It encourages executives to hold on to their stock options when the company is undergoing financial problems.
• D) It forces executives to focus on the company's long-term success because ESOP funds are guaranteed by the Pension Benefit Guarantee Corporation.
• E) It mandates that an ESOP invest at least 51 percent of its assets in the company's own stock.

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Definitions:

Direct Labour

The wages and expenses directly associated with the production of goods, representing labor that can be directly allocated to products.

Manufacturing Overhead

The indirect factory-related costs that are not directly tied to a specific product.

Cost per Unit

The total cost associated with producing one unit of a product, including both fixed and variable costs.

Variable Costs

Expenses that change in proportion to the level of production or business activity, including costs such as materials and direct labor.