A Chain of Cause-And-Effect Relationships That Appropriately Link the Four

question 5

Multiple Choice

A chain of cause-and-effect relationships that appropriately link the four balanced scorecard perspectives is:

• A)a high return on investment causes customer loyalty that results in skilled production workers that improve process quality.
• B)skilled production workers help to produce process quality that results in customer loyalty that helps to increase return on investment.
• C)customer loyalty results in a high return on investment that results in the ability to attract skilled production workers that improve process quality.
• D)improved process quality results in a high return on investment that causes customer loyalty that results in the ability to attract skilled production workers.

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Definitions:

Total Cost

The complete cost of production that includes both variable and fixed expenses.

Marginal Cost

The financial outlay required to produce an additional single unit of a product or service.

Variable Cost

Costs that change in proportion to the level of goods or services that a business produces, such as materials and labor.

Total Cost

The total of all costs associated with the creation of goods or services, encompassing both constant and fluctuating expenses.