Question 1

Briefly explain the role of a measure map as an element of the balanced scorecard. How is it different from a strategy map?

Accepted Answer

Measure maps show the expected relations...

Question 2

Performance targets

Accepted Answer

A)  provide goals for employees
B)  are never linked to incentive compensation
C)  are always linked to employee quarterly bonuses
D)  are an optional part of the balanced scorecardE) A) and B)
F) C) and D)

Question 3

Mason works at LoftCo, Inc., studying and improving operational efficiencies. The performance measures he gathers include determining the number of defective units produced in a week. Mason is focused on the internal processes perspective of the balanced scorecard performance management system.

Accepted Answer

A) True 
 B)False

Question 4

Beaver Valley Oil Refinery produces various grades of petroleum products at its refinery operations. All of the following may be considered an initiative undertaken as a part of the company's CSR efforts except

Accepted Answer

A)  installing equipment to reduce greenhouse gas emissions at its refinery operations
B)  donating heating fuel to the local community center so that it can host more community events and expand its outreach to the rural populations outside the city limits
C)  providing training to the accounting staff so they better understand FASB requirements for applying accounting standards for financial reporting
D)  investing funds in equipment to conserve water at all refinery operationsE) A) and B)
F) B) and C)

Question 5

Johnson Lumber Mill produces various grades of cut boards from raw lumber. All of the following may be considered an initiative undertaken as a part of the company's CSR efforts except

Accepted Answer

A)  planting trees to replace those used by the mill
B)  donating lumber to the local community to construct a community center
C)  pursuing new product lines and expanding the customer base to increase profitability of the company
D)  investing funds in wind turbines or other renewable sources to provide energy to run the sawmillE) B) and D)
F) None of the above

Question 6

Briefly describe the concept of a performance measurement system.

Accepted Answer

Performance measurement systems are used...

Question 7

Bekah and Rafael, supervisors in the Human Resources Department at James Manufacturing, are tasked with determining appropriate performance metrics for the learning and growth perspective of their company's balanced scorecard. Which of the following is the best metric for this situation?

Accepted Answer

A)  return on investment
B)  operating throughout
C)  material price variance
D)  hours of employee training offered each quarterE) B) and D)
F) B) and C)

Question 8

To minimize common measures bias when developing divisional balanced scorecards for unique divisions within a corporation,

Accepted Answer

A)  one division may focus more heavily on a subset of the four perspectives, for example on learning and growth and internal processes, while other divisions focus on different perspectives, such as customer and financial
B)  each division must focus equally on all four perspectives of the balanced scorecard
C)  the performance metrics should be treated as strategic objectives in and of themselves within each division
D)  it is important to stop gathering information when the results for the division look goodE) B) and C)
F) B) and D)

Question 9

When CSR initiatives include the added dimension of ensuring the ability to meet current needs without compromising the ability of future generations to meet their needs, the CSR activities are referred to as

Accepted Answer

A)  sustainability efforts
B)  sustainability balanced scorecard
C)  substantial efforts
D)  substantial initiativesE) B) and C)
F) C) and D)

Question 10

Which of the following is the best-known strategic performance measurement system?

Accepted Answer

A)  product costing system
B)  lean management system
C)  standard cost system
D)  balanced scorecardE) All of the above
F) A) and D)

Question 11

One of the objectives of the four balanced scorecard performance perspectives is to help management focus on looking beyond typical financial measures of performance.

Accepted Answer

A) True 
 B)False

Question 12

A company's balanced scorecard may include

Accepted Answer

A)  only nonfinancial metrics
B)  only financial metrics
C)  both nonfinancial and financial metrics
D)  neither nonfinancial nor financial metricsE) A) and B)
F) All of the above

Question 13

Differentiate between strategic objectives and strategic initiatives as used in the balanced scorecard.

Accepted Answer

Strategic objectives in the balanced sco...

Question 14

Strategic learning results

Accepted Answer

A)  not only by verifying strategic objective expectations but also by adjusting them when expected relationships are not supported by statistical analysis
B)  from confirming that a balanced scorecard is no longer necessary for the organization
C)  from verifying strategic objective expectations with statistical analysis
D)  from using only nonfinancial performance metricsE) None of the above
F) All of the above

Question 15

Nonfinancial performance measures in the balanced scorecard such as customer satisfaction are often _____ of future financial performance.

Accepted Answer

A)  leading indicators
B)  lagging indicators
C)  poor indicators
D)  not considered an indicatorE) B) and D)
F) B) and C)

Question 16

The balanced scorecard is named for its view of company performance focusing only on financial measures.

Accepted Answer

A) True 
 B)False

Question 17

Briefly explain the role of performance targets in the balanced scorecard.

Accepted Answer

Performance targets indicate t...

Question 18

Strategic initiatives are interchangeable with strategic objectives.

Accepted Answer

A) True 
 B)False

Question 19

An important consideration in establishing a measure map includes determining the

Accepted Answer

A)  leading and lagging indicators
B)  mission of the organization
C)  standard costs of the products being manufactured
D)  net income of the companyE) A) and C)
F) B) and C)

Question 20

Motivated reasoning, surrogation, and common measures bias are three terms describing

Accepted Answer

A)  strategic initiatives within the balanced scorecard framework
B)  three perspectives of the balanced scorecard
C)  cognitive or psychological biases that may impact decision making with the balanced scorecard
D)  mission-focused metrics commonly used in the implementation of the balanced scorecardE) B) and D)
F) B) and C)

Exam 28: The Balanced Scorecard and Corporate Social Responsibility

Motivated reasoning, surrogation, and common measures bias are three terms describing

Correct AnswerverifiedShow Answer

The balanced scorecard is named for its view of company performance focusing only on financial measures.

Correct AnswerverifiedShow Answer

Nonfinancial performance measures in the balanced scorecard such as customer satisfaction are often _____ of future financial performance.

Correct AnswerverifiedShow Answer

Which of the following is the best-known strategic performance measurement system?

Correct AnswerverifiedShow Answer

Mason works at LoftCo, Inc., studying and improving operational efficiencies. The performance measures he gathers include determining the number of defective units produced in a week. Mason is focused on the internal processes perspective of the balanced scorecard performance management system.

Correct AnswerverifiedShow Answer

Beaver Valley Oil Refinery produces various grades of petroleum products at its refinery operations. All of the following may be considered an initiative undertaken as a part of the company's CSR efforts except

Correct AnswerverifiedShow Answer

A company's balanced scorecard may include

Correct AnswerverifiedShow Answer

Briefly describe the concept of a performance measurement system.

Correct AnswerverifiedPerformance measurement systems are used...View AnswerShow Answer

Strategic initiatives are interchangeable with strategic objectives.

Correct AnswerverifiedShow Answer

Strategic learning results

Correct AnswerverifiedShow Answer

An important consideration in establishing a measure map includes determining the

Correct AnswerverifiedShow Answer

Johnson Lumber Mill produces various grades of cut boards from raw lumber. All of the following may be considered an initiative undertaken as a part of the company's CSR efforts except

Correct AnswerverifiedShow Answer

Performance targets

Correct AnswerverifiedShow Answer

Briefly explain the role of a measure map as an element of the balanced scorecard. How is it different from a strategy map?

Correct AnswerverifiedMeasure maps show the expected relations...View AnswerShow Answer

When CSR initiatives include the added dimension of ensuring the ability to meet current needs without compromising the ability of future generations to meet their needs, the CSR activities are referred to as

Correct AnswerverifiedShow Answer

One of the objectives of the four balanced scorecard performance perspectives is to help management focus on looking beyond typical financial measures of performance.

Correct AnswerverifiedShow Answer

Briefly explain the role of performance targets in the balanced scorecard.

Correct AnswerverifiedPerformance targets indicate t...View AnswerShow Answer

Differentiate between strategic objectives and strategic initiatives as used in the balanced scorecard.

Correct AnswerverifiedStrategic objectives in the balanced sco...View AnswerShow Answer

To minimize common measures bias when developing divisional balanced scorecards for unique divisions within a corporation,

Correct AnswerverifiedShow Answer

Bekah and Rafael, supervisors in the Human Resources Department at James Manufacturing, are tasked with determining appropriate performance metrics for the learning and growth perspective of their company's balanced scorecard. Which of the following is the best metric for this situation?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Performance measurement systems are used...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Measure maps show the expected relations...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Performance targets indicate t...
View Answer

Correct Answer
verified
Strategic objectives in the balanced sco...
View Answer

Correct Answer
verified

Correct Answer
verified