The Balanced Scorecard (Scenario)

question 66

Multiple Choice

The Balanced Scorecard (Scenario)
Upon completing his industrial engineering degree, Najib took a position as a manager with the Bilad Mint, a manufacturer of commemorative and collectible products. Bassel, Najib's boss and the VP of operations, has been asked by the organization's CEO to look into the balanced scorecard approach of performance management to see whether this would be appropriate for the organization. In turn, Bassel has asked Najib to look into balanced scorecard approaches and report back to him.
-The intent of the balanced scorecard is to __________ .

• A) identify which areas are most critical to the organization's success
• B) create a benchmark for the company
• C) emphasize that all four areas are important to the organization's success
• D) search for the best practices among competitors only

---

Definitions:

Required Rate

The minimum expected return by investors to compensate for the risk of an investment, often used in capital budgeting.

Useful Life

The estimated period over which a fixed asset is expected to be usable by an organization, impacting its depreciation calculations.

Straight-Line

A method of calculating depreciation or amortization of an asset evenly across its useful life.

Discount Rate

The specific rate used in the context of discounted cash flow analysis to ascertain the present value of cash flows that are to be received in the future.