Which of the following statements is true? A balanced scorecard consists of a report showing a performance measure such as ROI or residual income for all of the divisions in a company that generate profits. If a strategy is not working, it should become evident on the balanced scorecard when some of the predicted effects don’t occur. In essence, a balanced scorecard lays out a theory of how the company can take concrete actions to attain its desired outcomes. The strategy should seem plausible, but it should be regarded as only a theory.

Which of the following statements is true? A balanced scorecard consists of a report showing a performance measure such as ROI or residual income for all of the divisions in a company that generate profits. If a strategy is not working, it should become evident on the balanced scorecard when some of the predicted effects don’t occur. In essence, a balanced scorecard lays out a theory of how the company can take concrete actions to attain its desired outcomes. The strategy should seem plausible, but it should be regarded as only a theory.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter14: The Balanced Scorecard And Corporate Social Responsibility

Section: Chapter Questions

Problem 1CMA: Which of the following statements regarding the balanced scorecard is not correct? a. It seeks to...

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Which of the following statements regarding the balanced scorecard is not correct? a. It seeks to address the problems associated with traditional financial measures used to assess performance. b. The notion of value chain analysis plays a major role in the drawing up of a balanced scorecard. c. It relies on the perception of the users with regard to service provided. d. It is directly derived from scientific management theories.
In a balanced scorecard, a key strategic if-then statement is provided: if the number of defective units decreases, then market share will increase. Assume that the targeted reduction level of defective units was achieved but that the targeted market share increase was not achieved. Which statement best describes this outcome? a. The company has not successfully implemented its strategic plan. b. Single-loop feedback is needed. c. The hypothesized relationship is somehow invalid. d. Corrective action must be taken so that the strategy can be executed as intended.
Which of the following statements is true? I. A balanced scorecard consists of a report showing a performance measure such as ROI or residual income for all of the divisions in a company that generate profits. II. If a strategy is not working, it should become evident on the balanced scorecard when some of the predicted effects don't occur. III. In essence, a balanced scorecard lays out a theory of how the company can take concrete actions to attain its desired outcomes. The strategy should seem plausible, but it should be regarded as only a theory. Multiple Choice Both statements I and III are true. All of the statements are true. None of the statements are true. Both statements II and III are true.
Which of the following statements about the balanced scorecard approach is false? It requires managers to focus on financial measures more than nonfinancial measures. It looks at performance from the following perspectives: financial, customer, internal business, and learning and growth. It helps balance short-term operating performance with long-term strategies. It recognizes that traditional measures of performance are often not adequate to fully assess a company’s performance.
Which of the following statements is true? 1. Financial measures such as ROI are generally better than nonfinancial measures of key success drivers such as customer satisfaction as lead indicators of future financial performance. II. The performance measures on a balanced scorecard tend to fall into four groups: financial measures, customer measures, internal business process measures, and learning and growth measures. III. Financial measures such as ROI and residual income as well as operating measures may be included in a balanced scorecard. Multiple Choice Both statements II and Ill are true. None of the statements are true. Both statements I and Ill are true. All of the statements are true. planning
Financial ratio analysis is a widely used tool for assessing the "health" of an organization and identifying any specific areas of weakness within the operation that may require management attention. Show us the formula for the ratio and explain in plain terms what the ratio tells us about the company's performance or operational efficiency. Also be sure to indicate whether it's better for the ratio's calculated result to be a higher or lower value.
Which of the following statements is true? A balanced scorecard contains both customer and internal business process performance measures because improvements in internal business process should result in improvements in customer satisfaction. Incentive compensation for employees, such as bonuses, should be tied to balanced scorecard performance measures only if managers are confident that the performance measures are easily manipulated by those being evaluated.
Which of the following statements regarding the balanced scorecard is not correct?a. It seeks to address the problems associated with traditional financial measures used to assess performance.b. The notion of value chain analysis plays a major role in the drawing up of a balanced scorecard.c. It relies on the perception of the users with regard to service provided.d. It is directly derived from scientific management theories.
Which of the following statements about performance targets is true? a.Performance targets have nothing to do with performance metrics. b.Performance targets are the same thing as strategic initiatives. c.Performance targets are the same thing as performance metrics. d.Performance targets are levels of improvement that management wants to achieve for performance metrics.
Which of the following promotes goal congruence (aligned goals between segment managers and top management)? Residual Income as a performance evaluation measure O Return on Investment as a performance evaluation measure A positive residual income means O the investment has exceeded management's expectations based on their target rate of return. O the investment has not met management's expectations based on their target rate of return. O A positive or negative residual income does not tell us whether management's expectations were met.
9. A balanced scorecard is a) a performance-measurement approach that uses both financial and non-financial measures to evaluate a company's operations in an integrated way. b) a tool used to measure the benefits and costs of implementing a new strategy. c) used only by small organizations that cannot afford more expensive methods of evaluating their operations. d) focuses on non-financial measures in order to balance the many other financial reports companies use to evaluate their operations.
Which of the following statements regarding responsibility accounting systems is true? O Residual income is best used when evaluating the performance of profit centers rather than investment centers. An advantage of using return on investment to evaluate performance is that it encourages managers to increase both operating assets and operating income. O The use of residual income as a performance measure may lead segment managers to reject investments in projects that would be favorable for the company as a whole. O Residual income is a less effective metric for evaluating performance if there are significant differences in the size of the operating segments. O None of the above statements is true.