Explain This Statement: a Primary Benefit of the Balanced Scorecard

question 2

Essay

Explain this statement: A primary benefit of the balanced scorecard is that it complements financial indicators with operational measures of customer satisfaction,internal processes,and the innovation and improvement activities of the organization.

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Definitions:

Total Janitorial Costs

The complete expenses associated with cleaning and maintaining a facility.

Market Value

The current price at which an asset or service can be bought or sold in the open market, subject to supply and demand.

Reciprocal Services Method

A method used in cost accounting to allocate costs between interdependent departments, acknowledging mutual services they provide to each other.

Support Department Costs

The expenses associated with departments that do not directly produce goods or services but are necessary for the operation of the business, such as HR and IT departments.