Many companies use a balanced scorecard for performance evaluation. The balanced scorecard has four business perspectives, and utilizes KPIs to evaluate performance in various areas. Which of the following KPIs would relate to the financial perspective?
A) Hours of employee training
B) Number of warranty claims
C) Percentage of market share
D) Return on investment

Question

Quizplus · Accepted Answer

Return on investment relates to the financial perspective, as it measures the profitability and financial success of the company. Choices A, B, and C relate to other perspectives such as learning and growth, customer, and internal business processes, respectively.

Many Companies Use a Balanced Scorecard for Performance Evaluation