A "Balanced Scorecard" for Measuring Company Performance

question 99

Multiple Choice

A "balanced scorecard" for measuring company performance

• A)entails putting equal emphasis on financial and strategic objectives.
• B)entails putting balanced emphasis on profit and nonprofit objectives.
• C)prevents the drive for achieving financial objectives from overwhelming the pursuit of strategic objectives.
• D)prevents the drive for achieving strategic objectives from overwhelming the pursuit of financial objectives.
• E)strikes a balance between financial and strategic objectives.

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Definitions:

Material Price Variance

The variance between the real price paid for materials and their anticipated (standard) price.

Material Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted or standard cost, attributable to paying a higher or lower wage rate than anticipated.

Variable Overhead

Costs of production that fluctuate with the level of output, such as utilities or raw materials.