The Balanced Scorecard

question 42

Multiple Choice

The balanced scorecard:

• A) Is a tool used to communicate the organizational metrics using a traffic light approach (red/yellow/green).
• B) Is a method used to evaluate the health of an organization by looking at all value drivers such as the customers, the workforce, the financials, and business processes.
• C) Focuses its attention on an organization's financials.
• D) Is used to communicate the TCO for an IT investment.
• E) Is one of many metrics used to evaluate the value of an IT investment.

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Definitions:

Choices

The act of selecting between two or more possibilities or options in a decision-making process.

Rationing

Allocating a limited supply of a good or resource among people who would like to have more of it. When price performs the rationing function, the good or resource is allocated to those willing to give up the most “other things” in order to get it.

Scarcity

The essential economic dilemma revolves around the vastness of human aspirations contrasted with the limitations of available resources.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.