Why Is It Important for Management to Use a Balanced

question 34

Multiple Choice

Why is it important for management to use a balanced scorecard?

• A) to help employees understand how their work contributes to the company's goals
• B) to view performance in several areas simultaneously
• C) to save companies in payroll costs
• D) to actually see the sequence of suppliers that contribute to a product
• E) to characterize informal structural arrangements

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Definitions:

Interest

The cost of borrowing money, usually expressed as a percentage of the amount borrowed.

Tax Rate

The specific ratio of income that must be given to the government as tax by both people and companies.

Budgeting Process

A systematic approach where businesses estimate their future income, expenditures, and capital needs to achieve their financial goals.

Selling Price

The amount of money for which a product is sold to the customer, not necessarily reflecting its cost or intrinsic value.