Balanced Scorecards Contain a Number of Factors That Are Important

question 11

Essay

Balanced scorecards contain a number of factors that are important to the success of a business. These factors are often divided into four categories: financial, customer, learning and growth, and internal operations.
Consider the twelve factors that follow. $\begin{array} { | c | l | } \hline \text { 1. } & \text { Market share } \\\hline \text { 2. } & \text { Earnings per share } \\\hline \text { 3. } & \text { Manufacturing cycle efficiency } \\\hline \text { 4. } & \text { Machine downtime } \\\hline \text { 5. } & \text { Number of patents held } \\\hline \text { 6. } & \text { Employee suggestions } \\\hline \text { 7. } & \text { Number of repeat sales } \\\hline \text { 8. } & \text { Levels of inventories held } \\\hline \text { 9. } & \text { Number of vendors used } \\\hline \text { 10. } & \text { Cash flow from operations } \\\hline \text { 11. } & \text { Employee training hours } \\\hline 12 . & \text { Gross margin } \\\hline\end{array}$ Required:
Determine the proper classification (financial, customer, learning and growth, or internal operations) for each of the twelve factors listed.

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Definitions:

Workers' Wealth

The accumulation of financial and material assets by individuals employed in various occupations, minus their liabilities.

Quantity Supplied

The total amount of a product or service that producers are willing and able to sell at a given price over a specified period.

Derived Demand

The demand for a factor of production or intermediate good that occurs as a result of the demand for another product or service.

Factor of Production

Inputs used in the production of goods or services in the process of wealth creation, including labor, capital, land, and entrepreneurship.