Briefly Describe the Balanced Scorecard Approach to Control

question 63

Essay

Briefly describe the Balanced Scorecard approach to control. Explain how it differs from the traditional approach to control used in most companies.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to the net profit or loss.

Operating Activities

These involve the primary revenue-generating activities of an entity, such as cash flows from selling goods and services.

Cash Flows

This refers to the net amount of cash being transferred into and out of a business, especially in the context of operating, investing, and financing activities.

Financial Statement

A written record that conveys the business activities and financial performance of a company, commonly including balance sheet, income statement, and cash flow statement.