Which of the Following About a Strategic Performance Measurement System

question 31

Multiple Choice

Which of the following about a strategic performance measurement system (SPMS) is incorrect?

• A) It is a system that focuses on translating a strategy into financial and non-financial measures.
• B) SPMS requires linking performance measures in cause-and-effect relationships.
• C) SPMS always require the development of a strategy map first, followed by a balanced scorecard.
• D) SPMS can be used by non-profit organisations.

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Definitions:

Collection Expected

This refers to the amount of money a business anticipates receiving from its customers who have purchased goods or services on credit.

Maturity Date

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.

Note Receivable

A written promise for amounts to be received by a creditor from a debtor, typically generating interest income for the holder.

Interest

The cost of borrowing money or the payment received for the investment of money, typically expressed as a percentage of the principal.