Managers Focus on the Various Elements of the Scorecard to Set

question 14

True/False

Managers focus on the various elements of the scorecard to set targets, evaluate performance, and guide discussion about what further actions need to be taken.

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Definitions:

Accounting Profit

The total revenue of a business minus the explicit costs of operating, not including opportunity costs.

Implicit Costs

The opportunity costs that are not directly paid out but represent the loss of potential income from using resources in a certain way.

Opportunity Costs

Missing out on possible advantages from other choices by opting for a particular alternative.

Externalities

Spillover effects of an activity that influence the well-being of nonconsenting parties.