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Question 56 - CPIM-Part-2 discussion

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A balanced scorecard is a performance measurement approach that involves:

A.
balancing supply and demand.
Answers
A.
balancing supply and demand.
B.
assigning profit responsibility to key managers.
Answers
B.
assigning profit responsibility to key managers.
C.
obtaining external industry performance measures against the company's key performance indicators (KPIs).
Answers
C.
obtaining external industry performance measures against the company's key performance indicators (KPIs).
D.
linking financial and non-financial performance measures to organizational goals.
Answers
D.
linking financial and non-financial performance measures to organizational goals.
Suggested answer: D

Explanation:

A balanced scorecard is a performance measurement approach that involves linking financial and non-financial performance measures to organizational goals.According to the web search results, a balanced scorecard is a strategic planning and management system that organizations use to communicate what they are trying to accomplish, align the day-to-day work with strategy, prioritize projects, products, and services, and measure and monitor progress towards strategic targets1.A balanced scorecard focuses on four key perspectives: financial, customer, internal business process, and learning and growth2.Each perspective includes objectives, measures, targets, and initiatives that are aligned with the organization's vision, mission, and strategy3. By using a balanced scorecard, organizations can balance the short-term and long-term objectives, the financial and non-financial outcomes, and the internal and external stakeholders.

asked 16/09/2024
Jeffrey Cayao
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