The Balanced Scorecard Approach

question 10

Multiple Choice

The balanced scorecard approach

• A)Derives its name from the balance it attempts to achieve among a firm's executives,managers,and shareholders.
• B)Combines both decision management and decision control.
• C)Translates a plan of action that identifies objectives and performance drivers into a strategy to help the organization move in the right direction.
• D)Focuses on vague,open statements when setting objectives in order to allow managers flexibility to apply the objective to their individual business units.
• E)Evaluates performance using 8-10 different perspectives in order to effectively incorporate all areas of the organization.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and included in the product cost.

Electricity

A form of energy resulting from the existence of charged particles, used as a power source.

Assembly Worker

An individual employed in the manufacturing sector whose primary role involves assembling components or products.

Mixed Costs

Expenses that have both a fixed and a variable component, changing with the level of production or sales activity but also including a constant element.