Balanced Scorecard Is Designed to Bring About Organizational Change

question 14

Multiple Choice

Balanced scorecard is designed to bring about organizational change.Which of the following is NOT a means of alignment?

• A) Employees must share ownership of objectives, measures, targets, and initiatives.
• B) Incentives must be structured to support strategy.
• C) Resources must be allocated to support strategy.
• D) All of these.

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Definitions:

Standard Cost System

An accounting method that assigns predetermined costs to products and services, which are then compared to actual costs to measure performance.

Labor Rate Variance

The difference between the actual cost of labor and the budgeted or standard cost of labor, used as a measure of performance in cost control.

Average Cost

A financial metric calculated by dividing the total cost of goods available for sale by the total number of items available for sale, used to determine the profitability of sales.

Fixed Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributed to variations in the number of units produced.