Question 1

Following are some of the steps in implementing a balanced scorecard. Which one of these steps would be performed last?

Accepted Answer

A)  Collect and analyse scorecard data to monitor performance. 
B)  Clarify organisational vision and strategies. 
C)  Investigate variances and reward employees. 
D)  Establish action plans. 
A)  Collect and analyse scorecard data to monitor performance. 
B)  Clarify organisational vision and strategies. 
C)  Investigate variances and reward employees. 
D)  Establish action plans.

Question 2

The first step in implementing a balanced scorecard is to clarify organisational vision, core competencies, and strategies. The strategies:

Accepted Answer

A)  Are most effectively developed in a decentralised organisation 
B)  Provide guidance for achieving the vision 
C)  Are the core competencies of the organisation 
D)  Should explicitly incorporate all core competencies 
A)  Are most effectively developed in a decentralised organisation 
B)  Provide guidance for achieving the vision 
C)  Are the core competencies of the organisation 
D)  Should explicitly incorporate all core competencies

Question 3

The basis of a balanced scorecard is continuous strategic analysis from as many perspectives as possible.

Accepted Answer

A) True 
 B)False

Question 4

An organisation's core competencies are related to its strengths relative to competitors. Those strengths can include: $\begin{array}{llcc}
 \text { I } &    \text { Productivity and skills } \
 \text { II } & \text { Reputation ard legal rights } \
 \text { III } & \text { Mission and core purpose }\
\end{array}$

Accepted Answer

A)  II and III only 
B)  I and III only 
C)  I and II only 
D)  I, II, and III 
A)  II and III only 
B)  I and III only 
C)  I and II only 
D)  I, II, and III

Question 5

The primary aim of the balanced scorecard is to:

Accepted Answer

A)  Use performance indicators that are highly objective 
B)  Translate elements of a company's strategic plan into measurable performance indicators 
C)  Put less emphasis on financial measures because they are too narrowly focused 
D)  Provide a truthful basis for evaluating managers' performance 
A)  Use performance indicators that are highly objective 
B)  Translate elements of a company's strategic plan into measurable performance indicators 
C)  Put less emphasis on financial measures because they are too narrowly focused 
D)  Provide a truthful basis for evaluating managers' performance

Question 6

Strengths of the balanced scorecard related to communication and linkages include: $\begin{array}{ll}
\text { I } & \text { Encouraging clarification of vision and strategies} \
\text { I } & \text {  Improving orgarisational conserisus } \
\text {III } & \text { Selecting measures that reflect the only strengths of the organisation }
\end{array}$

Accepted Answer

A)  I and III only 
B)  II and III only 
C)  I and II only 
D)  I, II, and III 
A)  I and III only 
B)  II and III only 
C)  I and II only 
D)  I, II, and III

Question 7

Steps in the innovation cycle of the value chain include:

Accepted Answer

A)  Designing products and services 
B)  Building products and services 
C)  Delivering products and services 
D)  Providing customer service 
A)  Designing products and services 
B)  Building products and services 
C)  Delivering products and services 
D)  Providing customer service

Question 8

The balanced scorecard links short-term and long-term performance objectives to organisational vision and strategies.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following best describes the relationship between strategies and operating plans?

Accepted Answer

A)  Operating plans are the same as strategies. 
B)  Strategies lead to operating plans. 
C)  Operating plans form the basis for strategies. 
D)  Strategies and operating plans are unrelated to one another. 
A)  Operating plans are the same as strategies. 
B)  Strategies lead to operating plans. 
C)  Operating plans form the basis for strategies. 
D)  Strategies and operating plans are unrelated to one another.

Question 10

One of the strengths of the balanced scorecard is its ability to provide guidance for improvements. Those improvements can be related to: $\begin{array}{llcc}
 \text { I } &    \text { Cost reductions} \
 \text { II } & \text { Employee morale } \
 \text { III } & \text {Decision making }\
\end{array}$

Accepted Answer

A)  I and III only 
B)  II and III only 
C)  I and II only 
D)  I, II, and III 
A)  I and III only 
B)  II and III only 
C)  I and II only 
D)  I, II, and III

Question 11

Lack of senior management support is one of the major causes for failed balanced scorecard initiatives.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following measures would be least likely to be included in a balanced scorecard's customer perspective?

Accepted Answer

A)  revenue growth by product line 
B)  Total operating income by product line 
C)  Customer satisfaction rating 
D)  Percent of repeat sales 
A)  revenue growth by product line 
B)  Total operating income by product line 
C)  Customer satisfaction rating 
D)  Percent of repeat sales

Question 13

Part of strategic decision making is periodically clarifying organisational vision and core competencies.

Accepted Answer

A) True 
 B)False

Question 14

Steps in the operations cycle of the value chain include:

Accepted Answer

A)  Designing products and services 
B)  Building products and services 
C)  Identifying customer preferences 
D)  Providing customer service 
A)  Designing products and services 
B)  Building products and services 
C)  Identifying customer preferences 
D)  Providing customer service

Question 15

The balanced scorecard may be inappropriate for:

Accepted Answer

A)  Motivating employees 
B)  Generating improved financial performance 
C)  Compensating employees 
D)  Improving communication 
A)  Motivating employees 
B)  Generating improved financial performance 
C)  Compensating employees 
D)  Improving communication

Question 16

The perspectives in a typical balanced scorecard include all of the following except:

Accepted Answer

A)  Financial 
B)  Customer 
C)  Qualitative 
D)  Learning and growth 
A)  Financial 
B)  Customer 
C)  Qualitative 
D)  Learning and growth

Question 17

Weaknesses of the balanced scorecard include all of the following except:

Accepted Answer

A)  Inability to clarify vision and strategies 
B)  Lack of employee support 
C)  Expensive and time-consuming implementation 
D)  Doubt about links among the perspectives 
A)  Inability to clarify vision and strategies 
B)  Lack of employee support 
C)  Expensive and time-consuming implementation 
D)  Doubt about links among the perspectives

Question 18

FPM's strategic plan includes the following statement: "We deliver high-quality and timely service to our internal and external customers." That statement is best described as a(n)

Accepted Answer

A)  Specific performance objective 
B)  Operating plan 
C)  Mission statement 
D)  Strategy 
A)  Specific performance objective 
B)  Operating plan 
C)  Mission statement 
D)  Strategy

Question 19

In terms of motivation, one of the balanced scorecard's strengths is:

Accepted Answer

A)  Aligning individual goals with organisational strategies 
B)  Convincing managers that the scorecard is more than a temporary fad 
C)  Improved financial performance 
D)  Having generally-defined objectives to increase motivation 
A)  Aligning individual goals with organisational strategies 
B)  Convincing managers that the scorecard is more than a temporary fad 
C)  Improved financial performance 
D)  Having generally-defined objectives to increase motivation

Question 20

Balanced scorecard initiatives are sometimes seen as temporary fads by employees.

Accepted Answer

A) True 
 B)False

Following are some of the steps in implementing a balanced scorecard. Which one of these steps would be performed last?

The first step in implementing a balanced scorecard is to clarify organisational vision, core competencies, and strategies. The strategies:

The basis of a balanced scorecard is continuous strategic analysis from as many perspectives as possible.

An organisation's core competencies are related to its strengths relative to competitors. Those strengths can include: I Productivity and skills II Reputation ard legal rights III Mission and core purpose

The primary aim of the balanced scorecard is to:

Strengths of the balanced scorecard related to communication and linkages include: I Encouraging clarification of vision and strategies I Improving orgarisational conserisus III Selecting measures that reflect the only strengths of the organisation

Steps in the innovation cycle of the value chain include:

The balanced scorecard links short-term and long-term performance objectives to organisational vision and strategies.

Which of the following best describes the relationship between strategies and operating plans?

One of the strengths of the balanced scorecard is its ability to provide guidance for improvements. Those improvements can be related to: I Cost reductions II Employee morale III Decision making

Lack of senior management support is one of the major causes for failed balanced scorecard initiatives.

Which of the following measures would be least likely to be included in a balanced scorecard's customer perspective?

Part of strategic decision making is periodically clarifying organisational vision and core competencies.

Steps in the operations cycle of the value chain include:

The balanced scorecard may be inappropriate for:

The perspectives in a typical balanced scorecard include all of the following except:

Weaknesses of the balanced scorecard include all of the following except:

FPM's strategic plan includes the following statement: "We deliver high-quality and timely service to our internal and external customers." That statement is best described as a(n)

In terms of motivation, one of the balanced scorecard's strengths is:

Balanced scorecard initiatives are sometimes seen as temporary fads by employees.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Planning Budgeting and Behaviour

Operational Budgets

Job and Process Costing Systems

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters

Exam 17: The Balanced Scorecard and Strategy Maps

Following are some of the steps in implementing a balanced scorecard. Which one of these steps would be performed last?

The first step in implementing a balanced scorecard is to clarify organisational vision, core competencies, and strategies. The strategies:

The basis of a balanced scorecard is continuous strategic analysis from as many perspectives as possible.

An organisation's core competencies are related to its strengths relative to competitors. Those strengths can include: I Productivity and skills II Reputation ard legal rights III Mission and core purpose

The primary aim of the balanced scorecard is to:

Strengths of the balanced scorecard related to communication and linkages include: I Encouraging clarification of vision and strategies I Improving orgarisational conserisus III Selecting measures that reflect the only strengths of the organisation

Steps in the innovation cycle of the value chain include:

The balanced scorecard links short-term and long-term performance objectives to organisational vision and strategies.

Which of the following best describes the relationship between strategies and operating plans?

One of the strengths of the balanced scorecard is its ability to provide guidance for improvements. Those improvements can be related to: I Cost reductions II Employee morale III Decision making

Lack of senior management support is one of the major causes for failed balanced scorecard initiatives.

Which of the following measures would be least likely to be included in a balanced scorecard's customer perspective?

Part of strategic decision making is periodically clarifying organisational vision and core competencies.

Steps in the operations cycle of the value chain include:

The balanced scorecard may be inappropriate for:

The perspectives in a typical balanced scorecard include all of the following except:

Weaknesses of the balanced scorecard include all of the following except:

FPM's strategic plan includes the following statement: "We deliver high-quality and timely service to our internal and external customers." That statement is best described as a(n)

In terms of motivation, one of the balanced scorecard's strengths is:

Balanced scorecard initiatives are sometimes seen as temporary fads by employees.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Planning Budgeting and Behaviour

Operational Budgets

Job and Process Costing Systems

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters