Following Are Some of the Steps in Implementing a Balanced

question 80

Multiple Choice

Following are some of the steps in implementing a balanced scorecard. Which one of these steps would be performed last?

• A) Investigate variances and reward employees.
• B) Collect and analyse scorecard data to monitor performance.
• C) Clarify organisational vision and strategies.
• D) Establish action plans.

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Definitions:

Profitability Index

A calculation used to assess the attractiveness of an investment, calculated as the present value of future cash flows divided by the initial investment.

Independent Project

A project that can be pursued without affecting the acceptance or funding of other projects, allowing for standalone consideration in decision-making.

Net Present Value

The contrast in the present value of money received and the present value of money spent over a designated duration, applied in capital budgeting to appraise the profitability of a potential investment.

Cash Inflows

Refers to the money received by a business from its various activities, including sales, investments, financing, etc.