To Evaluate the Effectiveness of Their Strategies, Some Companies Are

question 114

True/False

To evaluate the effectiveness of their strategies, some companies are developing balanced scorecards, a set of measurements unique to a company that includes both financial and operational measures and gives managers a quick, comprehensive picture of the company's total performance.

Differentiate between costs that are expensed and those that are capitalized in relation to long-lived assets.

Understand and identify various costs associated with long-lived assets.

Differentiate between types of long-lived assets including tangible and intangible assets.

Classify expenditures related to assets correctly as capital or revenue expenditures.

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Definitions:

Nonrivalry

A characteristic of a good or service where one person's use does not diminish the availability or value for others, common in public goods.

Nonrival Consumption

A characteristic of certain goods where one person's use does not diminish the availability or quality of the good for others.

Rival Consumption

A situation where one person's consumption of a good reduces the ability of another person to consume the same good.

Nonexcludable

A characteristic of a good or service indicating that it is not possible to prevent non-paying customers from accessing it.