Chapter 12, Problem 12.6Q

To determine

Introduction: The balanced scorecard is the strategic management metric to measure the effectiveness of the internal functions of the business and their outcomes and improve the functions if necessary. The performance measures included in the balanced scorecard must have a cause-and-effect relationship with the strategic goals of the company.

To explain: The reasons for linking together the measures are included in the balanced scorecard in the form of an if-then hypothesis statement.