Traditionally,organizations Have Evaluated Their Performance Using Only Financial Measures

question 44

Essay

Traditionally,organizations have evaluated their performance using only financial measures.However,many other performance indicators should be considered.The balanced scorecard was developed to assist managers in measuring performance across several perspectives.
Required
a.Identify and discuss each of the perspectives used in the balanced scorecard.
b.Provide three measures of performance used in each perspective.

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Definitions:

Average Sale Period

The average amount of time it takes for a business to sell its inventory or a specific product.

Net Profit Margin Percentage

A financial ratio indicating the percentage of revenue that remains as net income after all expenses, interest, and taxes have been deducted.

Equity Multiplier

The equity multiplier is a financial leverage ratio that measures the portion of a company’s assets financed by stockholders' equity, indicating financial risk.

Total Assets

The total of all assets owned by a company, including current and non-current assets, representing its value to shareholders.