An Important Implication of the "Balance Scorecard" Approach Is That

question 46

Multiple Choice

An important implication of the "balance scorecard" approach is that

• A) managers need to recognize tradeoffs in stakeholder demands and realize that such demands represent a "zero-sum" game in which one stakeholder will gain only at another's loss
• B) the key emphasis on customer satisfaction and financial goals are only a means to that end
• C) managers should not look at their job as primarily balancing stakeholder demands; increasing satisfaction among multiple stakeholders can be achieved simultaneously
• D) gains in financial performance and customer satisfaction must often come at a cost of employee satisfaction

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Definitions:

Direct Method

A cost allocation approach directly assigning service department costs to producing departments without any intermediate steps.

Sales Adjusted

The revision of sales figures to account for returns, allowances for damaged goods, and discounts given.

Cash Basis

An accounting method where transactions are recorded when cash is received or paid, without regard to when the transactions occurred.

Selling and Administrative Expense

Costs incurred by a company from its selling activities and the management of the overall company, excluding production costs.