An Important Implication of the Balanced Scorecard Approach Is That

question 4

Multiple Choice

An important implication of the balanced scorecard approach is that

• A) managers need to recognize that satisfaction of stockholder demands is their primary job.
• B) the emphasis on customer satisfaction and financial goals are only a means to that end.
• C) managers should not look at their job as primarily balancing stakeholder demands.
• D) gains in financial performance must come at a cost of employee satisfaction.

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Definitions:

Monthly Fixed

Regular, consistent expenses that a business incurs each month regardless of its operational volume, such as rent or salaries.

Lubrication Cost

Expenses associated with the lubrication of machinery and equipment in a manufacturing or production process.

Least-squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed and predicted values.

Fixed Component

A portion of overall costs that does not change in the short term, regardless of the level of output or activity.