The Balanced Scorecard Approach Is Based on the Belief That

question 62

Multiple Choice

The balanced scorecard approach is based on the belief that management should evaluate their business from ____ distinct perspectives.

• A) two
• B) three
• C) four
• D) five

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Definitions:

Chemical Company

A business entity that specifically focuses on the manufacturing, research, and sale of chemicals and chemical-based products.

ABC Philosophy

Stands for Activity-Based Costing, a philosophy that allocates overhead and indirect costs to specific activities, leading to more accurate product or service costing.

Inventories

Assets held for sale in the ordinary course of business, or in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Cost Driver

A factor that causes a change in the cost of an activity or operation.