Which of the Following Questions Would the Financial Perspective of the Balanced

question 149

Multiple Choice

Which of the following questions would the financial perspective of the balanced scorecard attempt to answer?

• A) How does the company continue to improve, learn, and grow?
• B) How do customers view the company?
• C) Which business processes must the company excel in?
• D) How does the company create value for its stakeholders?

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Definitions:

Mixed Cost

A cost composed of a mixture of fixed and variable components. Costs are fixed for a set level of production or consumption, becoming variable with further production or consumption.

Fixed Expenses

Regular expenses that do not vary in total over a wide range of activity levels.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted; indicates the contribution towards covering fixed expenses and generating profit.

Net Income

The income a company retains after deducting all costs, taxes, and expenses from its total revenue.