A Benefit of the Balanced Scorecard Methodology Is That It

question 30

True/False

A benefit of the balanced scorecard methodology is that it is feasible for any business unit level strategy and provides a means to link performance evaluation to strategy implementation.

Understand the factors influencing a company's decision regarding short-term vs. long-term financing.

Calculate and analyze the cost of various types of short-term financing.

Describe the characteristics and implications of factoring accounts receivable.

Understand and calculate changes in net working capital and their impact on free cash flow.

---

Definitions:

Administrative Costs

Expenses related to the general operation of a business, including salaries of executive staff, office supplies, and utilities.

Indirect Costs

Costs that are not directly assignable to a specific product or project, such as rent, utilities, and managerial salaries.

Account Analysis

A detailed examination of the components of an account, usually to identify specific trends, costs, or areas of improvement within a business.

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and direct labor.