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

Question 2

One of the strengths of the balanced scorecard is its ability to provide guidance for improvements. Those improvements can be related to

Accepted Answer

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

Question 3

Which of the following statements about performance evaluation is true?

Accepted Answer

A)  Non-financial measures are less useful than financial measures because they are not as objective 
B)  Financial measures are less useful than non-financial measures because they are biased 
C)  A combination of financial and non-financial measures gives a more useful picture of organisational performance than either one alone 
D)  Only one or two non-financial performance measures should be used 
A)  Non-financial measures are less useful than financial measures because they are not as objective 
B)  Financial measures are less useful than non-financial measures because they are biased 
C)  A combination of financial and non-financial measures gives a more useful picture of organisational performance than either one alone 
D)  Only one or two non-financial performance measures should be used C

Question 4

Each perspective of the balanced scorecard normally contains

Accepted Answer

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

Question 5

One of the balanced scorecard's biggest advantages is the small amount of time and money involved in its implementation.

Accepted Answer

A) True 
 B)False

Question 6

An organisation's core competencies are related to its strengths relative to competitors. Those strengths can include

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 7

Non-financial measures include

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 8

Which of the following are inputs to the development of organisational strategy?

Accepted Answer

A)  Organisational vision and operating plans 
B)  Operating plans and core competencies 
C)  Actual operations and operating plans 
D)  Organisational vision and core competencies 
A)  Organisational vision and operating plans 
B)  Operating plans and core competencies 
C)  Actual operations and operating plans 
D)  Organisational vision and core competencies

Question 9

Steps in the operations cycle of the value chain include

Accepted Answer

A)  Identifying customer preferences 
B)  Designing products and services 
C)  Building products and services 
D)  Providing customer service 
A)  Identifying customer preferences 
B)  Designing products and services 
C)  Building products and services 
D)  Providing customer service

Question 10

Lack of senior management support is one of the major causes for failed balanced scorecard initiatives.

Accepted Answer

A) True 
 B)False

Question 11

Financial measures used for organisational evaluation can pertain to

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 12

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 13

Which of the following best describes the relationship between strategies and operating plans?

Accepted Answer

A)  Operating plans form the basis for strategies. 
B)  Operating plans are the same as strategies. 
C)  Strategies lead to operating plans. 
D)  Strategies and operating plans are unrelated to one another. 
A)  Operating plans form the basis for strategies. 
B)  Operating plans are the same as strategies. 
C)  Strategies lead to operating plans. 
D)  Strategies and operating plans are unrelated to one another.

Question 14

National Bank of Victoria (NBOV) is the fourth largest commercial bank in Australia. NBOV 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. NBOV'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. Which of the following measures is least likely to be included in the financial perspective of NBOV's balanced scorecard?

Accepted Answer

A)  Prime interest rate offered 
B)  Total loans outstanding 
C)  Profit margin 
D)  Total demand for deposits 
A)  Prime interest rate offered 
B)  Total loans outstanding 
C)  Profit margin 
D)  Total demand for deposits

Question 15

Which of the following is an implementation mistake related to the balanced scorecard?

Accepted Answer

A)  Beginning by clarifying organisational vision 
B)  Linking objectives to strategies 
C)  Defining objectives in too general a manner 
D)  Integrating vision and strategies into operations in a more complete manner 
A)  Beginning by clarifying organisational vision 
B)  Linking objectives to strategies 
C)  Defining objectives in too general a manner 
D)  Integrating vision and strategies into operations in a more complete manner

Question 16

Analysis of the gaps between actual operations and performance objectives can be used to

Accepted Answer

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

Question 17

Which of the following measures would be least likely to be included in a balanced scorecard's financial perspective?

Accepted Answer

A)  Customer satisfaction rating 
B)  Percent of sales from return customers 
C)  Average revenue per customer 
D)  Increase in sales by geographic region 
A)  Customer satisfaction rating 
B)  Percent of sales from return customers 
C)  Average revenue per customer 
D)  Increase in sales by geographic region

Question 18

Successful organisations communicate their vision, strategies, goals, and objectives to upper-level employees.

Accepted Answer

A) True 
 B)False

Question 19

In terms of motivation, one of the balanced scorecard's strengths is

Accepted Answer

A)  Improved financial performance 
B)  Aligning individual goals with organisational strategies 
C)  Convincing managers that the scorecard is more than a temporary fad 
D)  Having generally-defined objectives to increase motivation 
A)  Improved financial performance 
B)  Aligning individual goals with organisational strategies 
C)  Convincing managers that the scorecard is more than a temporary fad 
D)  Having generally-defined objectives to increase motivation

Question 20

National Bank of Victoria (NBOV) is the fourth largest commercial bank in Australia. NBOV 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. NBOV'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 NBOV's balanced scorecard would likely include

Accepted Answer

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

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

One of the strengths of the balanced scorecard is its ability to provide guidance for improvements. Those improvements can be related to

Which of the following statements about performance evaluation is true?

Each perspective of the balanced scorecard normally contains

One of the balanced scorecard's biggest advantages is the small amount of time and money involved in its implementation.

An organisation's core competencies are related to its strengths relative to competitors. Those strengths can include

Non-financial measures include

Which of the following are inputs to the development of organisational strategy?

Steps in the operations cycle of the value chain include

Lack of senior management support is one of the major causes for failed balanced scorecard initiatives.

Financial measures used for organisational evaluation can pertain to

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

Which of the following best describes the relationship between strategies and operating plans?

Which of the following is an implementation mistake related to the balanced scorecard?

Analysis of the gaps between actual operations and performance objectives can be used to

Which of the following measures would be least likely to be included in a balanced scorecard's financial perspective?

Successful organisations communicate their vision, strategies, goals, and objectives to upper-level employees.

In terms of motivation, one of the balanced scorecard's strengths is

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Cost-Volume-Profit Cvp Analysis

Job Costing Systems

Process Costing Systems

Absorption, Variable and Throughput Costing

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Standard Costs, Flexible Budgets and Variance Analysis

Operational Budgets

Strategy and Control

Planning and Budgeting for Strategic Success

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 18: 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?

One of the strengths of the balanced scorecard is its ability to provide guidance for improvements. Those improvements can be related to

Which of the following statements about performance evaluation is true?

Each perspective of the balanced scorecard normally contains

One of the balanced scorecard's biggest advantages is the small amount of time and money involved in its implementation.

An organisation's core competencies are related to its strengths relative to competitors. Those strengths can include

Non-financial measures include

Which of the following are inputs to the development of organisational strategy?

Steps in the operations cycle of the value chain include

Lack of senior management support is one of the major causes for failed balanced scorecard initiatives.

Financial measures used for organisational evaluation can pertain to

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

Which of the following best describes the relationship between strategies and operating plans?

Which of the following is an implementation mistake related to the balanced scorecard?

Analysis of the gaps between actual operations and performance objectives can be used to

Which of the following measures would be least likely to be included in a balanced scorecard's financial perspective?

Successful organisations communicate their vision, strategies, goals, and objectives to upper-level employees.

In terms of motivation, one of the balanced scorecard's strengths is

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Cost-Volume-Profit Cvp Analysis

Job Costing Systems

Process Costing Systems

Absorption, Variable and Throughput Costing

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Standard Costs, Flexible Budgets and Variance Analysis

Operational Budgets

Strategy and Control

Planning and Budgeting for Strategic Success

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