The Balanced Scorecard Approach

question 143

Multiple Choice

The balanced scorecard approach

• A) uses only financial measures to evaluate performance.
• B) uses rather vague open statements when setting objectives in order to allow managers and employees flexibility.
• C) normally sets the financial objectives first and then sets the objectives in the other perspectives to accomplish the financial objectives.
• D) evaluates performance using about 10 different perspectives in order to effectively incorporate all areas of the organization.

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Definitions:

Perpetual Inventory Records

The continuous tracking of inventory levels and updates in real-time, showing the quantity of inventory on hand at all times.

Credit for Returns

A financial adjustment made by a seller to the account of a buyer to reflect returned goods.

Discount Period

The discount period is the time frame during which a buyer can take advantage of a purchase discount offered by the supplier for early payment.

Total Amount Collected

The sum of money received from various sources, including sales, investments, financing, and other business activities.