Julia and Jaime Manage a Glass-Making Company

question 37

Multiple Choice

Julia and Jaime manage a glass-making company. Their company includes a manufacturing division, a warehouse and logistics division, and a customer care division. To avoid common measures bias when analyzing the performance of each of these unique divisions, Julia and Jaime should

• A)choose performance metrics that will be applied equally to all three divisions regardless of the division's unique characteristics
• B)not use the balanced scorecard performance measuring system because it cannot be applied to unique circumstances
• C)not include the learning and growth perspective of the balanced scorecard under these circumstances
• D)create a unique divisional scorecard for each separate division

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Definitions:

Financial Account

A component of the balance of payments that records transactions that cause a change in ownership of financial assets and liabilities between residents and non-residents.

Balance Surplus

The amount by which income exceeds expenditures in a budget, or the excess of receipts over payments in an account.

Balance Deficit

A financial situation where expenditures exceed revenue over a specific period, often used in the context of government budgets.

Current Account Items

Transactions that involve the trade of goods and services, income from foreign investments minus payments made to other countries, and cash transfers, within a country's balance of payments.