Question

The balanced scorecard approach

a. uses only financial measures to evaluate performance.
b. uses vague statements when setting objectives in order to allow managers and employees flexibility.
c. normally sets the financial objectives first and then sets the objectives in the other perspectives to accomplish the financial objectives.
d. only sets objectives for the financial perspective.

Answer 1

Answer: The correct answer is "c. normally sets the financial objectives first and then sets the objectives in the other perspectives to accomplish the financial objectives.".

Explanation: The balanced scorecard approach normally sets the financial objectives first and then sets the objectives in the other perspectives to accomplish the financial objectives.

The balanced scorecard states that we must focus on the organization from four perspectives and that goals, measures, rules or objectives be developed for these perspectives.

The 4 perspectives are:

- Financial: which is the most important one whose objectives are established first and the objectives of the other perspectives will be established in order to meet the objective of the financial perspective.

-Client

-Internal processes

-Organizational capacity