Criteria for Reevaluating Internal Business Processes Using the Balanced Scorecard

question 69

Multiple Choice

Criteria for reevaluating internal business processes using the balanced scorecard include all of the following EXCEPT:

• A) asset utilization improvements.
• B) improvements in employee morale.
• C) increases in employee skills.
• D) changes in turnover rates.

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Definitions:

Contribution Format Income Statement

An income statement that separates fixed and variable costs to highlight the contribution margin.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its revenues, indicating the proportion of fixed costs in the company's cost structure.

Contribution Format Income Statement

An income statement format that separates fixed costs from variable costs, thus showing the contribution margin.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales, indicating how revenue growth translates into growth in operating income.