Which of the Following Statements Is a Possible Pitfall While

question 126

Multiple Choice

Which of the following statements is a possible pitfall while implementing a balanced scorecard?

• A) Managers using cost-benefit considerations while designing a balanced scorecard.
• B) Managers ignoring objective measures as market share, manufacturing yield.
• C) Managers using subjective measures in the balanced scorecard.
• D) Top management ignoring nonfinancial measures when evaluating employee performance.

---

Definitions:

Marginal Cost

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

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that consumers are willing to buy.

Marginal Cost

The increment in cost due to the manufacture of an additional product or service unit.

Price Elasticity

A concept related to elasticity of demand, specifically measuring how much the quantity demanded of a good responds to changes in its price.