A Balanced Scorecard Is a Comprehensive Management Control System That

question 25

Multiple Choice

A balanced scorecard is a comprehensive management control system that balances traditional financial measures with measures of customer service, internal business processes and the organization'a capacity for learning and growth.However, it excludes a _____ perspective.

• A) management
• B) employee
• C) supplier
• D) government

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Definitions:

Cost-volume-profit Analysis

An accounting technique that analyzes how changes in costs, sales volume, and price affect a company's profit.

Contribution Margin Ratio

The contribution margin ratio quantifies the portion of sales revenue that is not consumed by variable costs and is available to cover fixed costs and generate profit.

Variable Costs

Costs that change in proportion to the level of activities or volume of production in a business.

Fixed Costs

Expenses that do not fluctuate with changes in production level or sales volume.