managerial 13.3
12) Measures of the balanced scorecard's customer perspective include: A) market share B) number of on-time deliveries C) number of process improvements D) revenue growth
A
16) Measures of the balanced scorecard's learning-and-growth perspective include: A) employee satisfaction ratings B) economic value added C) time taken to deliver product to customers D) customer-retention percentage
A
22) Manufacturing cycle efficiency is an example of a balanced-scorecard measure of the: A) internal business process perspective B) customer perspective C) learning and growth perspective D) financial perspective
A
3) The first step to successful balanced scorecard implementation is clarifying the: A) organization's vision and strategy B) elements that pertain to value-added aspects of the business C) owner's expectations about return on investment D) objectives of all four balanced scorecard measurement perspectives
A
Riter Corporation manufactures water toys. It plans to grow by producing high-quality water toys at a low cost that are delivered in a timely manner. There are a number of other manufacturers who produce similar water toys. Riter believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy. 25) To further company strategy, measures on the balanced scorecard would most likely include: A) number of process improvements B) price premium earned C) longer cycle times D) an increase in operating income from increased profit margins
A
11) Measures of the balanced scorecard's financial perspective include all of the following EXCEPT: A) operating income B) customer satisfaction C) gross profit percentage D) cost reductions
B
14) Measures of the balanced scorecard's internal-business-process perspective include: A) market share B) new product development time C) employee education D) return on investment
B
21) The number of complaints about a product is an example of a balanced-scorecard measure of the: A) internal business process perspective B) customer perspective C) learning and growth perspective D) financial perspective
B
5) Balanced scorecard objectives are in balance when: A) debits equal credits B) financial performance measurements are less than the majority of measurements C) the measurements are fair D) the measurements reflect an improvement over the previous year
B
6) The internal business processes perspective of the balanced scorecard comprises three subprocesses that address all of the following EXCEPT: A) innovative processes used to create new products, services, and processes B) motivating current employees C) providing service and support to the customer after the sale D) delivering existing products and services to best meet the needs of customers
B
7) Identify the best description of the balanced scorecard's financial perspective. To achieve our firm's vision and strategy: A) how can we obtain greater profits for the current year? B) how can we increase shareholder value? C) how will we obtain continuous improvements? D) how can we secure greater customer satisfaction?
B
9) All of the following relate to the balanced scorecard's learning and growth perspective EXCEPT: A) How do we achieve greater employee satisfaction? B) What new products do we create? C) How do we provide information systems with updated technology? D) How will we motivate and empower our employees?
B
Stewart Corporation plans to grow by offering a sound system, the SS3000, that is superior and unique from the competition. Stewart believes that putting additional resources into R&D and staying ahead of the competition with technological innovations is critical to implementing its strategy. 24) To further company strategy, measures on the balanced scorecard would most likely include: A) number of process improvements B) manufacturing quality C) yield D) an increase in operating income from productivity gains
B
10) Measures of the balanced scorecard's financial perspective include: A) information system availability B) number of new patents C) revenue growth D) defect rates
C
15) Measures of the balanced scorecard's internal-business-process perspective include all of the following EXCEPT: A) operating capabilities B) number of new products C) employee turnover rates D) defect rates
C
18) Which of the following is NOT true of a good balanced scorecard? A) It tells the story of a company's strategy by articulating a sequence of cause-and-effect relationships. B) It helps to communicate corporate strategy to all members of the organization. C) It identifies all measures, whether significant or small, that help to implement strategy. D) It uses nonfinancial measures to serve as leading indicators of future financial performance.
C
19) Which of the following is NOT true of the balanced scorecard? A) Different strategies call for different scorecards. B) Successful implementation requires commitment and leadership from top management. C) Only objective measures should be used and subjective measures should be avoided. D) Cause-and-effect linkages may not be precise and should evolve over time.
C
23) Surveys of employee satisfaction is an example of a balanced-scorecard measure of the: A) internal business process perspective B) customer perspective C) learning and growth perspective D) financial perspective
C
26) Managers need to evaluate the success of a strategy by: A) evaluating budget-to-actual variances B) doing a cost-benefit analysis C) linking the sources of operating-income increases to the strategy D) evaluating the level of bonus compensation
C
1) ________ translates an organization's mission and strategy into a comprehensive set of performance measures that provide the framework for implementing its strategy. A) Productivity component B) Product differentiation C) Cost leadership D) The balanced scorecard
D
13) Measures of the balanced scorecard's customer perspective include all of the following EXCEPT: A) market share B) customer satisfaction C) number of new customers D) customer training on new products
D
17) Measures of the balanced scorecard's learning-and-growth perspective include all of the following EXCEPT: A) employee education and skill level B) percentage of processes with advanced controls C) employee-satisfaction ratings D) time taken to replace defective products
D
2) The purpose of the balanced scorecard is best described as helping an organization: A) develop customer relations B) mobilize employee skills for continuous improvements in processing capabilities, quality, and response times C) introduce innovative products and services desired by target customers D) translate an organization's mission and strategy into a set of performance measures that help to implement the strategy
D
20) The return-on-investment ratio is an example of a balanced-scorecard measure of the: A) internal business process perspective B) customer perspective C) learning and growth perspective D) financial perspective
D
4) The balanced scorecard is said to be "balanced" because it measures: A) short-term and long-term objectives B) financial and nonfinancial objectives C) internal and external objectives D) All of these answers are correct.
D
8) Identify the best description of the balanced scorecard's internal business processes perspective. To achieve our firm's vision and strategy: A) how do we lower costs? B) how do we motivate employees? C) how can we obtain greater profits? D) what processes will increase value to customers?
D