In designing a balanced scorecard approach for its operations, a company should
A)seek to determine as much detail as possible from its activities.
B)ensure the report is readily available as a discussion tool between management and shareholders.
C)attempt to link performance measures on a cause and effect basis.
D)eliminate any financial results as these will be dealt with in.

Question

Quizplus · Accepted Answer

The purpose of a balanced scorecard approach is to identify and measure key performance indicators in different areas of a company's operations, including financial, customer, internal processes, and learning and growth. To be effective, these performance indicators should be interlinked in a cause and effect relationship, which helps to establish a comprehensive understanding of how different aspects of the business contribute to overall success. Therefore, choice C is the best option, as it highlights the importance of linking performance measures in a cause and effect basis. Choices A, B, and D are not adequate, either because they do not address the core purpose of a balanced scorecard approach or because they provide incomplete or inaccurate information about the process.

In Designing a Balanced Scorecard Approach for Its Operations, a Company