Which of the Following Is True of a Balanced Scorecard

question 33

Multiple Choice

Which of the following is true of a balanced scorecard?

• A) It encourages employees to compete at the expense of cooperating to achieve organizational goals.
• B) It allows employees to buy their company when it is experiencing financial problems.
• C) It combines the advantages of different incentive pay plans and helps employees understand the organization's goals.
• D) It increases cooperation but does little to motivate day-to-day effort or to attract and retain top individual performers.
• E) It is the only measure used by top management to measure the performance of HR professionals and managers.

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Definitions:

Option to Abandon

A business decision making tool that allows a company to cease an investment or project if it turns out to be financially nonviable, minimizing losses.

Direct Labor Costs

The total cost of all the labor that is directly involved in the production of goods or the performance of services.

Variable Cost

Expenses that undergo alteration in response to the volume of production executed.

Office Rent

The cost associated with leasing a space for business operations or administrative work.