A ________ Combines Financial Measures of Past Performance with Nonfinancial

question 45

Multiple Choice

A ________ combines financial measures of past performance with nonfinancial measures of the drivers of future performance to provide management with a road map for creating shareholder value.

• A) profit center
• B) balanced scorecard
• C) cost driver
• D) operating budget

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Definitions:

Monopolistic Competitor

A type of market structure where many firms offer products that are similar but not identical, allowing for some degree of market power and product differentiation.

Short Run

A period in economics during which some factors of production and costs are variable, while others remain fixed.

Long Run

In economics, a period in which all factors of production and costs are variable, allowing for full adjustment to changes.

Profit

The financial gain achieved when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.