In the Process of Implementing the Balanced Scorecard Approach at His

question 129

Multiple Choice

In the process of implementing the balanced scorecard approach at his company, operations manager Seth Howard wonders whether internal activities and processes add value for customers and shareholders. This involves which dimension of the balanced scorecard?

• A) Customers
• B) Learning and growth
• C) Financials
• D) External business processes
• E) Internal business processes

---

Definitions:

Holding Inventory

involves maintaining a stock of goods or materials to meet demand without incurring stockout or excessive surplus costs.

Carrying Costs

Expenses incurred by holding inventory over a period, including storage costs, insurance, and opportunity costs.

Credit Policy Effects

The impact of a company's credit policy on its operations, including effects on sales volume, customer relationships, and cash flow.