Question 1

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

Accepted Answer

A)  Communicate and refine measures. 
B)  Establish performance targets and action plans. 
C)  Collect and analyse scorecard data. 
D)  Develop performance measures and objectives. 
A)  Communicate and refine measures. 
B)  Establish performance targets and action plans. 
C)  Collect and analyse scorecard data. 
D)  Develop performance measures and objectives.

Question 2

A representation that provides a visual view of an organisation's strategy with a single-page view of how objectives in the four balanced scorecard perspectives integrate and combine to guide strategy is known as a:

Accepted Answer

A)  Strategy map 
B)  Mission statement 
C)  Core competencies 
D)  Value chain 
A)  Strategy map 
B)  Mission statement 
C)  Core competencies 
D)  Value chain

Question 3

Managers should focus on finding the "one best measure" of performance based on the type of responsibility centre they manage.

Accepted Answer

A) True 
 B)False

Question 4

Well-run organisations evaluate performance based mainly on financial measures because they are more objective than non-financial measures.

Accepted Answer

A) True 
 B)False

Question 5

Balanced scorecard projects can motivate: I Employee effort
II Achievement of organisational strategies
III Managers to ignore biases and uncertainties

Accepted Answer

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

Question 6

An organisation's core competencies can include productivity, reputation, and regulatory advantages.

Accepted Answer

A) True 
 B)False

Question 7

The nature of an organisation's strategies influences the types of performance objectives managers establish.

Accepted Answer

A) True 
 B)False

Question 8

The balanced scorecard approach to performance evaluation: 
I$\text { Is less time consurming and expensive tharn other approaches}$
II $\text { Helps marnagers integrate strategies across divisions and furctions}$
III $\text {Assists marnagers in predictine possible future problerns}$

Accepted Answer

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

Question 9

Australia and New Zealand Banking Group Limited (ANZ) is the fourth largest commercial bank in Australia. ANZ assets total $46.1 billion, loans of $26 billion, and total deposits of $35.5 billion. It provides online, telephone, and traditional banking and investment services to both individuals and businesses in Australia. ANZ's mission is to create an exceptional customer experience internationally by providing solutions through leading technologies, offering a wide selection of financial products and services, and leveraging experience to meet customers' needs. ANZ could develop a balanced scorecard for: $\begin{array}{ll}
\text { I } & \text { The organisation as a whole } \
\text { I } & \text { Individual branches } \
\text {III } & \text { Domestic branches only } \
\text { IV } &\text { International branches only }
\end{array}$

Accepted Answer

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

Question 10

Australia and New Zealand Banking Group Limited (ANZ) is the fourth largest commercial bank in Australia. ANZ assets total $46.1 billion, loans of $26 billion, and total deposits of $35.5 billion. It provides online, telephone, and traditional banking and investment services to both individuals and businesses in Australia. ANZ's mission is to create an exceptional customer experience internationally by providing solutions through leading technologies, offering a wide selection of financial products and services, and leveraging experience to meet customers' needs. Internal business process measures on ANZ's balanced scorecard would likely include: $\begin{array}{llcc}
 \text { I } &    \text { Average wait time per customer} \
 \text { II } & \text {Training and development costs per intemal employee} \
 \text { III } & \text { Cost per customer served }\
\end{array}$

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

The internal business process perspective in a balanced scorecard is often broken down into its value chain components. Those components include all of the following except the

Accepted Answer

A)  Operations cycle 
B)  Post-sales service cycle 
C)  Innovation cycle 
D)  Budget cycle 
A)  Operations cycle 
B)  Post-sales service cycle 
C)  Innovation cycle 
D)  Budget cycle

Question 12

Components of organisational strategy include:

Accepted Answer

A)  Actual operations 
B)  Financial structure 
C)  Short-term financing 
D)  Comparing actual results to the budget 
A)  Actual operations 
B)  Financial structure 
C)  Short-term financing 
D)  Comparing actual results to the budget

Question 13

Non-financial measures include: 
I $\text {Cost variarices}$
II $\text {Defect rates}$
III $\text {Customer satisfaction surveys}$

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 14

The purpose of a balanced scorecard is to translate organisational vision and strategies into performance objectives that can be monitored over time.

Accepted Answer

A) True 
 B)False

Question 15

An organisational vision is concerned with creating value for stakeholders, including: $\begin{array}{llcc}
 \text { I } &    \text { The corrmurity and society} \
 \text { II } & \text { Ernployees and suppliers } \
 \text { III } & \text {Customers and onners }\
\end{array}$

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 16

Once balanced scorecard measures have been chosen, they should not be changed for at least five years.

Accepted Answer

A) True 
 B)False

Question 17

An organisation's operating plans include all of the following except:

Accepted Answer

A)  Actual operations 
B)  Short-term financing 
C)  Specific performance objectives 
D)  Short-term resource allocation 
A)  Actual operations 
B)  Short-term financing 
C)  Specific performance objectives 
D)  Short-term resource allocation

Question 18

Each perspective of the balanced scorecard normally contains:

Accepted Answer

A)  The same number of measures as the other perspectives 
B)  Four to seven performance measures 
C)  A single, comprehensive measure to limit information overload 
D)  Either input measures or outcome measures, but not both 
A)  The same number of measures as the other perspectives 
B)  Four to seven performance measures 
C)  A single, comprehensive measure to limit information overload 
D)  Either input measures or outcome measures, but not both

Question 19

Learning and growth measures, if incorporated in a balanced scorecard, cannot focus on employees.

Accepted Answer

A) True 
 B)False

Question 20

In which order should the following steps be taken in implementing a balanced scorecard? 
1 Develop links among the objectives of the organisation, divisions, departments, and individuals.
2 Provide feedback to employees and others.
3 Establish action plans and specific performance targets

Accepted Answer

A)  2, 1, 3 
B)  3, 2, 1 
C)  1, 2, 3 
D)  1, 3, 2 
A)  2, 1, 3 
B)  3, 2, 1 
C)  1, 2, 3 
D)  1, 3, 2

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

A representation that provides a visual view of an organisation's strategy with a single-page view of how objectives in the four balanced scorecard perspectives integrate and combine to guide strategy is known as a:

Managers should focus on finding the "one best measure" of performance based on the type of responsibility centre they manage.

Well-run organisations evaluate performance based mainly on financial measures because they are more objective than non-financial measures.

Balanced scorecard projects can motivate: I Employee effort II Achievement of organisational strategies III Managers to ignore biases and uncertainties

An organisation's core competencies can include productivity, reputation, and regulatory advantages.

The nature of an organisation's strategies influences the types of performance objectives managers establish.

The balanced scorecard approach to performance evaluation: I $\text { Is less time consurming and expensive tharn other approaches}$ II $\text { Helps marnagers integrate strategies across divisions and furctions}$ III $\text {Assists marnagers in predictine possible future problerns}$

The internal business process perspective in a balanced scorecard is often broken down into its value chain components. Those components include all of the following except the

Components of organisational strategy include:

Non-financial measures include: I $\text {Cost variarices}$ II $\text {Defect rates}$ III $\text {Customer satisfaction surveys}$

The purpose of a balanced scorecard is to translate organisational vision and strategies into performance objectives that can be monitored over time.

An organisational vision is concerned with creating value for stakeholders, including: I The corrmurity and society II Ernployees and suppliers III Customers and onners

Once balanced scorecard measures have been chosen, they should not be changed for at least five years.

An organisation's operating plans include all of the following except:

Each perspective of the balanced scorecard normally contains:

Learning and growth measures, if incorporated in a balanced scorecard, cannot focus on employees.

In which order should the following steps be taken in implementing a balanced scorecard? 1 Develop links among the objectives of the organisation, divisions, departments, and individuals. 2 Provide feedback to employees and others. 3 Establish action plans and specific performance targets

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 before the others?

A representation that provides a visual view of an organisation's strategy with a single-page view of how objectives in the four balanced scorecard perspectives integrate and combine to guide strategy is known as a:

Managers should focus on finding the "one best measure" of performance based on the type of responsibility centre they manage.

Well-run organisations evaluate performance based mainly on financial measures because they are more objective than non-financial measures.

Balanced scorecard projects can motivate: I Employee effort II Achievement of organisational strategies III Managers to ignore biases and uncertainties

An organisation's core competencies can include productivity, reputation, and regulatory advantages.

The nature of an organisation's strategies influences the types of performance objectives managers establish.

The internal business process perspective in a balanced scorecard is often broken down into its value chain components. Those components include all of the following except the

Components of organisational strategy include:

Non-financial measures include: I Cost variarices\text {Cost variarices}Cost variarices II Defect rates\text {Defect rates}Defect rates III Customer satisfaction surveys\text {Customer satisfaction surveys}Customer satisfaction surveys

The purpose of a balanced scorecard is to translate organisational vision and strategies into performance objectives that can be monitored over time.

An organisational vision is concerned with creating value for stakeholders, including: I The corrmurity and society II Ernployees and suppliers III Customers and onners

Once balanced scorecard measures have been chosen, they should not be changed for at least five years.

An organisation's operating plans include all of the following except:

Each perspective of the balanced scorecard normally contains:

Learning and growth measures, if incorporated in a balanced scorecard, cannot focus on employees.

In which order should the following steps be taken in implementing a balanced scorecard? 1 Develop links among the objectives of the organisation, divisions, departments, and individuals. 2 Provide feedback to employees and others. 3 Establish action plans and specific performance targets

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

Non-financial measures include: I $\text {Cost variarices}$ II $\text {Defect rates}$ III $\text {Customer satisfaction surveys}$