Question

Using the balanced scorecard approach, an organization evaluates managerial performance based on

A. Multiple nonfinancial measures only.
B. A single ultimate measure of operating results, such as residual income.
C. Multiple financial and nonfinancial measures.
D. Multiple financial measures only.

Answer 1

The balanced scorecard approach evaluates managerial performance based on multiple financial and nonfinancial measures. The correct answer is C.

Step-by-step explanation:

The correct answer is C. Multiple financial and nonfinancial measures. The balanced scorecard approach is a strategic management tool that evaluates the performance of an organization from multiple perspectives, including financial and nonfinancial measures.

It encourages a balanced view of performance by considering both financial and nonfinancial indicators, such as customer satisfaction, employee engagement, and process efficiency. By using multiple measures, the balanced scorecard helps organizations assess their performance from various angles and align their strategic goals with their overall mission.