A Balanced Scorecard Approach Creates Goals in Four Key Performance

question 95

Multiple Choice

A balanced scorecard approach creates goals in four key performance areas and assesses ________.

• A)whether the majority of them are met
• B)whether all four goals are met
• C)whether financial goals exceed the other goals
• D)which goals are exceeded

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Definitions:

Discounted Payback Period

The period of time it takes for an investment's cash flows, discounted back to the present value, to cover its initial cost.

Degree of Operating Leverage

A financial metric that measures how a change in sales volume will affect a company's operating income due to fixed and variable costs.

Fixed Costs

Expenses that do not change with varying levels of production or sales, such as rent or salaries.

Depreciation Expense

A measure of the reduction in value of an asset over a given period, used for accounting and tax purposes.