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Abstract :
The French organizational performance measurement system Tableau de Bord and the Balanced Scorecard framework introduced by Robert Kaplan and David Norton both use a variety of factors to assess performance. The Tableau de Bord has been used in France since the early 1900s, originally as a means to help process engineers gain a better understanding of the relationship between actions and process performance. It later evolved into a management tool for assessing the progress of the business and determining appropriate corrective actions. The Balanced Scorecard was developed out of the realization that organizational performance is too complex to be measured by only one performance indicator. It takes into account four different perspectives, namely, financial, customer, internal processes, and learning and growth. The benefits and implementation of these performance measurement processes are discussed.
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Copyright: COPYRIGHT 1997 Institute of Management Accountants
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Gale Document Number: GALE|A20231492
The emphasis in the balanced scorecard is on improvement rather than meeting a preset standard.
Free
True False
Residual income is primarily useful because it helps to compare the performance of divisions of different sizes.
Free
True False
All other things the same,if a division's traceable fixed expenses decrease the division's segment margin will increase.
Free
True False
If improvement in a performance measure on a balanced scorecard should lead to improvement in another performance measure,but does not,then management should reexamine its strategy.
True False
A decentralized organization is one in which decisions are made by top management and then implemented by managers at lower operating levels.
True False
All other things the same,a decrease in average operating assets will increase return on investment (ROI).
True False
A company that has a profit can increase its return on investment by:
Multiple Choice
Which of the following will not result in an increase in return on investment (ROI),assuming other factors remain the same?
Multiple Choice
Denner Company has two divisions,A and B,that reported the following results for October:
Multiple Choice
The concept of economic value added (EVA) is most similar to:
Multiple Choice
An investment center is any responsibility center in an organization that controls cost and revenues and invested funds.
True False
A segment of a business responsible for both revenues and expenses would be called:
Multiple Choice
Return on investment (ROI) is equal to the margin multiplied by:
Multiple Choice
A balanced scorecard is an integrated set of performance measures that should be designed to support management's strategy throughout the organization.
True False
Higado Confectionery Corporation has a number of store locations throughout North America.In income statements segmented by store,which of the following would be considered a common fixed cost?
Multiple Choice
When used in return on investment (ROI) calculations,operating assets include investments in land held for future use and investments in other companies.
True False
Which of the following performance measures will decrease if there is an increase in the accounts receivable?
Multiple Choice
Return on investment (ROI) may not be fully controllable by a manager because of committed costs.
True False
Delmar Corporation is considering the use of residual income as a measure of the performance of its divisions.What major disadvantage of this method should the company consider before deciding to institute it?
Multiple Choice
The Legal Department of an organization is not considered a responsibility center because it does not generate revenue.
True False