When Using the Balanced Scorecard to Monitor Performance, the Customer

question 161

Multiple Choice

When using the balanced scorecard to monitor performance, the customer perspective answers which of the following questions?

• A)Are we developing employees and providing technologies that facilitate change and improvement?
• B)Are we creating products and hiring employees with skills to create product and deliver them in a timely manner?
• C)Are we meeting our customers' expectations?
• D)Are we growing in a manner to be competitive in the industry?

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Definitions:

Machine Hours

A measurement representing the operational running time of machinery, used in allocating manufacturing overhead costs based on usage.

Overhead Assigned

The process of allocating indirect costs to specific cost objects, such as products or services, based on predetermined rates or bases.

Allocation Base

A criterion or standard used to distribute costs among multiple cost objects in a fair and systematic manner.

Plantwide Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, applied uniformly to all cost objects irrespective of the department in which they were produced.