Before a Balanced Scorecard Can Be Developed,managers Must

question 22

Multiple Choice

Before a balanced scorecard can be developed,managers must

• A)be clear about the strategy they are trying to achieve.
• B)understand the cause-and-effect relationship between various measures.
• C)both be clear about the strategy they are trying to achieve and understand the cause-and-effect relationship between various measures.
• D)neither be clear about the strategy they are trying to achieve nor understand the cause-and-effect relationship between various measures.

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Definitions:

Sales Volume

Sales volume refers to the total number of units of a product or service sold by a company within a specific time frame.

Factory Utility Cost

Factory utility cost encompasses expenses related to the consumption of utilities such as electricity, gas, and water in a manufacturing facility.

Mixed Cost

A cost that contains both variable and fixed cost components, changing in total with the level of activity but not in direct proportion.

Cases Bottled

The quantity of product units, specifically bottles, packaged during a production run.