Ch 18

Which of the following is not a step to maximize the value of nonfinancial measures, as suggested by Ittner and Larcker?

Benchmark with similar firms. Base actions on findings. Develop a causal model. Assess outcomes. Turn the data into information. Benchmark with similar firms.

The six steps Ittner and Larcker propose for maximizing the value of nonfinancial measures when using a balanced scorecard include all of the following except:

Continually refine the model. Assess outcomes. Gather data. Base actions on the data. Base actions on the findings of the model. Base actions on the data.

Reasons for failure to implement the balanced scorecard effectively include all of the following except:

Failure to link nonfinancial measures to strategy. Failure to validate the assumptions in the strategy map. Setting the wrong performance targets. Failure to include SEC reporting responsibilities. Measuring the results incorrectly. Failure to include SEC reporting responsibilities.

The balanced scorecard is particularly important in difficult economic times because:

Financial measures are even more important. Nonfinancial measures are even more important. Financial measures may be distorted. Nonfinancial measures may be distorted. Financial measures are more accurate. Financial measures may be distorted.

The balanced scorecard measures the strategic business unit (SBU)'s performance in all of the following areas except:

Learning and growth. Managerial performance. Customer satisfaction. Internal business processes. Accounting and tax compliance. Accounting and tax compliance.

Companies use the balanced scorecard to describe strategy in detail through the use of a cause-and-effect diagram which is also known as a(n):

Status Diagram. Strategy Map. Performance Flowchart. Organizational Diagram. Operational Work-through. Strategy Map.

What is a common characteristic of Strategic business units (SBU) in practice?

They rely on nonfinancial information. They use little or no nonfinancial information. They rely on management expertise. They cost millions of dollars to implement. They assume the company is in the growth stage. They use little or no nonfinancial information.