A Balanced Scorecard That Includes Both Strategic and Financial Performance

question 6

Multiple Choice

A balanced scorecard that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because

• A)financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities,whereas strategic performance measures are leading indicators of a company's future financial performance.
• B)it entails putting equal emphasis on good strategy execution and good business model execution.
• C)a balanced scorecard approach pushes managers to avoid setting objectives that reflect the results of past decisions and organizational activities,and,instead,to set objectives that will serve as leading indicators of a company's future financial performance.
• D)it assists managers in putting roughly equal emphasis on short-term and long-term performance targets.
• E)it more or less forces managers to put equal emphasis on financial and strategic objectives.

---

Definitions:

Budgetary Process

A systematic approach used by organizations to plan and allocate resources based on projected revenues and expenses.

Budget Goals

Financial targets that an organization aims to achieve within a specific period through its budgeting process.

Forecast Level

The estimation of future quantities, values, or trends based on current and historical data.

Inventory Units

Inventory units refer to the individual items or products that are held in stock by a business, awaiting sale or use in production.