The First Step in Implementing a Balanced Scorecard Is to Clarify

question 92

Multiple Choice

The first step in implementing a balanced scorecard is to clarify organizational vision, core competencies, and strategies. The strategies:

• A)Are the core competencies of the organization
• B)Are most effectively developed in a decentralized organization
• C)Provide guidance for achieving the vision
• D)Should explicitly incorporate all core competencies

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Definitions:

Sunk Cost

A cost that has already been incurred and cannot be recovered, regardless of future events.

Differential Cost

The difference in cost between two alternative decisions or changes in the level of output or activity.

Total Cost Method

The total cost method is an accounting approach that sums all costs involved in producing or buying goods to determine their overall expense.

Selling Price

The amount of money for which a product or service is sold to customers.