What Is the Meaning of the Term "Balanced Scorecard"? What

question 42

Essay

What is the meaning of the term "balanced scorecard"? What are the merits of using a balanced scorecard in judging a company's performance?

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Definitions:

Controllable Costs

Controllable costs are expenses that can be regulated or influenced by decisions made by managers or individuals within a company, allowing for adjustments based on operational needs.

Responsibility Accounting

A system of accounting that segments performance by areas of responsibility within the organization, allowing for better monitoring and accountability.

Activity Index

A measure used to allocate overhead costs, based on activities that drive costs such as machine hours or labor hours.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate budgeting.