In the Balanced Scorecard Approach to Performance Measurement, the Goal

question 53

Multiple Choice

In the balanced scorecard approach to performance measurement, the goal of product quality relates to the:

• A) innovation perspective.
• B) financial perspective.
• C) managerial perspective.
• D) internal perspective.
• E) customer perspective.

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Definitions:

Diseconomies of Scale

The phenomenon where, as a firm expands, its costs start increasing per unit of output, usually due to inefficiencies and management challenges that arise with size.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase and may decrease.

Natural Monopoly

A market structure where a single provider is more efficient in supplying the entire market with a product or service, due to high fixed or startup costs.