Accounting Final- Chapter 12
) ________ is a measure of the balanced scorecard's customer perspective. A) Number of client complaints B) Defect rates C) Number of process improvements D) Revenue growth
a
) ________ is a measure of the balanced scorecard's internal process perspective. A) Service response time B) Customer satisfaction C) Gross profit percentage D) Cost reduction
a
) ________ is a measure of the balanced scorecard's learning-and-growth perspective. A) Information system availability B) Economic value added C) Cost reductions in key areas D) Customer-retention percentage
a
Successful implementation of a product differentiation strategy will result in ________. A) a large favorable growth and price-recovery components B) a large favorable price-recovery and productivity components C) a large favorable productivity and growth components D) only a large favorable growth component
a
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
When analyzing the change in operating income, the strategy component of productivity will increase when ________. A) capacity is reduced B) quality is enhanced C) selling prices are increased D) more units are produced and sold
a
Which of the following statements best define strategy? A) It describes how an organization can create value for its customers while differentiating itself from its competitors. B) It is an organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control. C) It is an organization's ability to offer products or services its customers perceive to be superior and unique relative to the products or services of its competitors. D) It describes how an organization motivates its employees to work for more hours without any increase in their wages.
a
Which of the following statements best relates to the balanced scorecard's learning and growth perspective? A) How will we empower our employees? B) How do we lower costs? C) What processes will increase value to customers? D) How can we obtain greater profits?
a
When analyzing the change in operating income, the strategy component of price-recovery ________. A) calculations are similar to the efficiency-variance calculations B) compares the change in output price with the changes in input prices C) will report a large positive amount when a company has successfully pursued the cost leadership strategy D) isolates the change attributed solely to an increase in production efficiencies
b
Which of the following statements best relates to the balanced scorecard's financial perspective? 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
Which of the following statements is a disadvantage of balanced scorecards? A) Balanced scorecards ignore short-run objectives. B) Balanced scorecards may become unwieldy and difficult to understand. C) Balanced scorecards use a lot of nonfinancial measures. D) Balanced scorecards are of little use in influencing managerial behavior.
b
Which of the following statements is true of a balanced scorecard? A) The balanced scorecard reduces managers' emphasis on long-run financial performance. B) The balanced scorecard reduces managers' emphasis on short-run financial performance. C) The primary goal of using the balanced scorecard is to sustain short-run financial performance. D) The primary goal of using the balanced scorecard is to sustain short-run nonfinancial performance.
b
________ is a measure of the balanced scorecard's internal-business-process perspective. A) Market share B) Manufacturing downtime C) Return on investment D) Number of customer complaints
b
) ________ is a measure of the balanced scorecard's financial perspective. A) Service response time B) Number of new patents C) Operating income D) Defect rates
c
) ________ perspective of the balanced scorecard focuses on a company's own operations that create value for customers that, in turn, help achieve financial objectives. A) Financial B) Customer C) Internal-business-process D) Learning-and-growth
c
Successful implementation of a cost leadership strategy will result in ________. A) large favorable growth and price-recovery components B) large favorable price-recovery and productivity components C) large favorable productivity and growth components D) only a large favorable growth component
c
When analyzing the change in operating income, the strategy component of price-recovery will increase when ________. A) capacity is reduced B) market share is increased C) selling prices are increased D) more units are sold
c
When analyzing the change in operating income, the strategy component of productivity ________. A) calculations are similar to the sales-volume variance calculations B) compares the change in output price with the changes in input prices C) will report a large positive amount when a company has successfully pursued the cost leadership strategy D) isolates the change attributed solely to an increase in the quantity of units sold
c
Which of the following statements is true of the internal-business-process perspective of a balanced scorecard? A) Internal-business-process perspective is composed of three subprocesses: innovation process; learning-and-growth process; and postsales-service process. B) Internal-business-process perspective evaluates the profitability of the strategy and the creation of shareholder value. C) Internal-business-process improvement targets are often determined after benchmarking against an organization's main competitors standards. D) Internal-business-process perspective is composed of three subprocesses: operations process; learning-and-growth process; and postsales-service process.
c
) Eliminating excess capacity is an initiative to achieve the ________ perspective under a balanced scorecard. A) marketing B) customer C) learning and growth D) internal-business-process
d
) In an effective balanced scorecard, ________. A) net income serves as the best indicator for the hard-to measure long-run nonfinancial performance B) sales budget serves as one of the leading indicator for the hard-to measure short-run financial performance C) sales budget serves as a leading indicator for the hard-to measure short-run nonfinancial performance D) customer satisfaction serves as one of the leading indicator for the hard-to measure long-run financial performance
d
) ________ translates an organization's mission and strategy into a comprehensive set of performance measures that provide the framework for implementing its strategy. A) Performance scoreboard B) Product differentiation C) Differential report D) Balanced scorecard
d
A ________ is a diagram that describes how an organization creates value by connecting strategic objectives in explicit cause-and-effect relationships with each other in the balanced scorecard perspectives. A) value diagram B) balanced scoreboard C) strategic scorecard D) strategy map
d
When analyzing the change in operating income, the strategy component of growth ________. A) calculations are similar to the selling-price variance calculations B) isolates the change attributed solely to an increase in market share C) isolates the change attributed solely to an increase in industry growth D) isolates the change attributed solely to an increase in the quantity of units sold
d
Which of the following statements best define a product differentiation strategy? A) It describes how an organization can increase customer base by differentiating its' product prices from its competitors. B) It is an organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control. C) It describes how an organization can decrease product prices by differentiating its' raw materials from its competitors. D) It is an organization's ability to offer products or services its customers perceive to be superior and unique relative to the products or services of its competitors.
d
Which of the following statements best relates to the balanced scorecard's internal business processes perspective? A) How do we lower costs? B) How do we motivate employees? C) How can we obtain greater profits? D) How processes will increase value to customers?
d
Which of the following statements is a possible pitfall while implementing a balanced scorecard? A) Managers using cost-benefit considerations while designing a balanced scorecard. B) Managers ignoring objective measures as market share, manufacturing yield. C) Managers using subjective measures in the balanced scorecard. D) Top management ignoring nonfinancial measures when evaluating employee performance.
d
Which of the following statements is true of successfully implementing a balanced scorecard? A) External auditors should design and implement the balanced scorecard. B) Balanced scorecard should never be communicated to all employees. C) Balanced scorecard should be formed exclusively by top management. D) Management accountants should determine the balanced scorecard measures.
d
