Answered: “Companies should focus on financial…

“Companies should focus on financial measures of quality because these are the only measures of quality that can be linked to bottom-line performance.” Do you agree? Explain.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 6MC: Which of the following is not a characteristic of a good performance measurement system? A. timely...

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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.
Which of the following is not a qualitative decision that should be considered in an outsourcing decision? A. employee morale B. product quality C. company reputation D. relevant costs
Firms with higher ethical standards will experience a higher level of economic performance than firms with lower or poor ethical standards. Do you agree? Why or why not?
Components of the organization that are demotivating for purposes of performance management are known as ______. A. business goals B. strategic plans C. uncontrollable factors D. incentives
Which of the following is not a characteristic of a good performance measurement system? A. timely B. consistent C. based on activities over which managers have no control or influence D. uses both long- and short-term performances and standards
“Companies should focus on nancial measures of quality because these are the only measures of quality that can belinked to bottom-line performance.” Do you agree? Explain.
In your opinion, where should companies spend most of their quality funds: on prevention, inspection, internal failure or external failure costs? Explain your logic in making this selection.
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 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? 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.
Both financial and nonfinancial performance measures are key inputs when evaluating the performance of managers. a. true b. false
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.