The Methodology That Uses Custom Key Measures Linked to a Company's

question 42

Multiple Choice

The methodology that uses custom key measures linked to a company's overall vision statement to measure the value of IT is called:

• A) the balanced scorecard approach.
• B) the modified scorecard approach.
• C) the strategic imperative approach.
• D) None of the above.

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Definitions:

Average Variable Cost

The total variable costs (costs that vary with production volume) divided by the number of units produced, which reflects the average cost per unit of varying expenses.

Total Variable Cost

The sum of all variable expenses related to the production of goods or services, which change with the level of output.

Average Variable Cost

The variable cost (costs that change with production volume) divided by the quantity of output produced.

Marginal Cost

The increase or decrease in the total cost incurred by producing one additional unit of a product or service.