When a Company Implements a Balanced Scorecard Approach in Its

question 9

Multiple Choice

When a company implements a balanced scorecard approach in its business,

• A)it must ensure that it focuses on every aspect of its operations.
• B)it must ensure that only one or two areas is seen as the focus.
• C)it must establish performance measures that are focused on the specific strategy of the company.
• D)it must never supplant the traditional accounting information that is available to management.

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are expected to yield benefits over several years, such as purchasing new machinery or expanding facilities.

Incremental Sales

The additional sales generated by a new marketing strategy, product launch, or any other business initiative.

Operating Expenses

Expenses that a business incurs through its normal business operations, such as sales and marketing, research, and development costs.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the corporation's goal of wealth maximization.