Which of the Following Statements About the Balanced Scorecard Approach

question 99

Multiple Choice

Which of the following statements about the balanced scorecard approach is false?

• A) It requires managers to focus on financial measures more than nonfinancial measures.
• B) It looks at performance from the following perspectives: financial, customer, internal business, and learning and growth.
• C) It helps balance short-term operating performance with long-term strategies.
• D) It recognizes that traditional measures of performance are often not adequate to fully assess a company's performance.

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Definitions:

Quality Control

The process of ensuring products and services meet customer expectations and regulatory requirements through consistent monitoring and testing.

Operating Income

Operating income refers to the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS) but before interest and taxes.

Strategic Performance Measurement Systems

A performance measurement system, such as the balanced scorecard, that defines and links strategic objectives to the performance metrics of a company.

Large Companies

These are corporations that have a significant market capitalization, often characterized by a large workforce, extensive product lines, and international operations.