Traditional Performance Management Systems Can Be Adapted to Include Measures

question 80

Multiple Choice

Traditional performance management systems can be adapted to include measures of environmental costs, savings, and liabilities. The amount of electricity used by an oil refinery is an example of a key performance indicator (KPI) classified under which perspective of the balanced scorecard?

• A)Financial perspective
• B)Customer perspective
• C)Internal business perspective
• D)Community perspective

---

Definitions:

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, debt, and paying dividends.

Cash Flows

The collective sum of cash flowing in and out of a company, which influences its liquidity.

Investing Sections

Refers to the part of the cash flow statement that shows the flow of cash related to investments in assets, securities, and other non-operational activities.

Financing Sections

Parts of financial statements or reports that detail funding activities like equity, debt issuance, and repayment of debt, providing insights into how a company finances its operations.