When Creating a Balanced Scorecard for His or Her Company

question 17

True/False

When creating a balanced scorecard for his or her company, an entrepreneur should establish goals for each critical indicator of company performance and create meaningful measures for each one.

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Definitions:

Variable Costs

Costs that vary in proportion to the level of activity or volume of production in a business.

Break-even Point

The break-even point is the point at which total costs and total revenues are equal, meaning the business is neither making a profit nor a loss.

Variable Costs

Costs that change directly and proportionately with the level of production or business activity.

Break-even Point

The level of sales at which total revenues equal total costs, resulting in no profit or loss.