A Balanced Scorecard Is Basically a Balance Sheet Prepared Using

question 62

True/False

A balanced scorecard is basically a balance sheet prepared using nonfinancial measures.A balanced scorecard is more than multiple performance measures.

---

Definitions:

Profit Margin

A measure of profitability, calculated as net income divided by revenue, indicating the percentage of revenue that exceeds the costs of goods sold.

Investment Turnover

Investment turnover measures how effectively a company uses its assets to generate sales revenue, indicating the efficiency of asset management.

Return on Investment

A measure used to evaluate the efficiency of an investment, calculated by dividing net profit by the cost of the investment.

Profit Center Income Statement

A financial report that measures the profitability of a particular segment, department, or division within a company, distinguishing it from other areas of the business.