Which of the following is an advantage of the balanced scorecard?
A) It reduces the need for innovation and learning.
B) It eliminates the problem of regulation costs.
C) It minimizes the chances of suboptimization.
D) It helps managers focus solely on financial measures.

Question

Quizplus · Accepted Answer

The balanced scorecard minimizes the chances of suboptimization by looking at a variety of measures in addition to financial ones. This encourages managers to consider factors beyond just short-term financial goals, which can lead to better decision-making and ultimately better overall results for the organization. Option A is incorrect as the balanced scorecard promotes innovation and learning. Option B is incorrect since the balanced scorecard does not address regulation costs. Option D is incorrect since the balanced scorecard does not solely focus on financial measures; it takes a more holistic view.

Which of the Following Is an Advantage of the Balanced