A system of performance measures, including nonfinancial measures, used to assess company and division manager performance is:
A) Hurdle rate.
B) Return on investment.
C) Balanced scorecard.
D) Residual income.
E) Investment turnover.

Question

Quizplus · Accepted Answer

A balanced scorecard is a system of performance measures that includes both financial and nonfinancial measures to evaluate company and division manager performance. It measures performance in four areas: financial, customer, internal business processes, and learning and growth. This provides a balanced view of organizational performance and helps managers to align their activities with the overall goals of the organization.

A System of Performance Measures, Including Nonfinancial Measures, Used to Assess