The Balanced Scorecard Approach Is Successful in Reducing Budgetary Slack

question 13

Multiple Choice

The balanced scorecard approach is successful in reducing budgetary slack because:

• A)It uses several different measures to assess how successful a department performed.
• B)It uses actual results rather than estimated budgeted figures to measure performance.
• C)It uses only those measures that balance the budgeted figures with the actual figures.
• D)It uses those measures that make the assets balance with the liabilities and owners' equity.

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Definitions:

Insurance Policy

A contract between an individual or entity and an insurance company, outlining the terms for the insurance company to compensate the insured in the event of a loss.

Notification Requirement

A legal or regulatory condition that requires a party to inform another party or authority about certain information or changes, often within a specified time frame.

Third Party

An individual or group other than the two primarily involved in a transaction or legal situation.

Contractual Duties

Obligations imposed by a contract, requiring parties to act (or refrain from acting) in certain ways in fulfillment of the agreement's terms.