A Relatively New Tool That Managerial Accountants Have Developed to Assist

question 1

Essay

A relatively new tool that managerial accountants have developed to assist is the balanced scorecard.

Explain the purpose of the balanced scorecard. List the various perspectives comprising the balanced scorecard, and explain what each perspective measures.

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Definitions:

Equity Method

An accounting technique used for recording investments in associate companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's net income or loss and dividend received.

Private Companies

Businesses whose shares are not traded publicly on stock exchanges and are typically owned by the company's founders, management, or a group of private investors.

Intangible Asset

An asset without physical substance that holds value for a business, such as patents, trademarks, and copyrights.

Amortization

The process of spreading the cost of an intangible asset over its useful life for accounting and tax purposes.