The Balanced Scorecard

question 94

Multiple Choice

The balanced scorecard

• A) is an activity-based responsibility accounting model that measures operating activities.
• B) is a financial-based responsibility accounting model that focuses on the financial performance of units, rewarding performance with static financial-oriented standards.
• C) is a strategic-based financial reporting system that balances assets with liabilities and owner's equity.
• D) is a strategic-based performance management system that identifies objectives and measures from a financial perspective, customer perspective, process perspective, and learning and growth perspective.

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Definitions:

Activity Index

A measure used to quantify the level of activity or engagement in a specific area, often used in various financial and operational analysis.

Flexible Budget

A budget that adjusts to different levels of activity, providing a useful comparison for actual costs incurred.

Budgeted Costs

Projected financial expenditures that a company expects to incur during a specified period in the future.

Static Budget

A fixed budget based on a specific level of activity and does not change with the actual level of activity.