Question 1

A balanced scorecard is designed to bring about organizational change. Which of the following is a means of alignment?

Accepted Answer

A)  Employees must share ownership of objectives, measures, targets, and initiatives.
B)  Incentives must be structured to support strategy.
C)  Resources must be allocated to support strategy.
D)  all of the above.E) C) and D)
F) A) and B)

Question 2

Which of the following statements is true of a testable strategy?

Accepted Answer

A)  It is not suitable for firms operating in dynamic environments.
B)  It is a set of personal goals aimed at short-term results.
C)  It is a set of linked objectives aimed at an overall goal.
D)  It aims at integrating financial and process measures to allow managers achieve individual goals.E) B) and D)
F) C) and D)

Question 3

A manufacturing cell has the theoretical capability of producing 55,000 microchips per quarter. The conversion cost per quarter is $30,000. There are 5,000 production hours available within the cell per quarter. The theoretical velocity per hour is:

Accepted Answer

A)  15 units.
B)  6 units.
C)  11 units.
D)  8 units.E) None of the above
F) B) and C)

Question 4

Communicating strategy through measurements requires both scope and flexibility. Which of the following statements is true?

Accepted Answer

A)  Flexibility requires subjective and objective measurement as well as nonfinancial measures.
B)  Flexibility requires that measures be optimal and dynamic.
C)  Scope implies that internal and external measures are needed.
D)  Both a and c are true.E) A) and C)
F) A) and D)

Question 5

Which of the following is true of double-loop feedback?

Accepted Answer

A)  It is the foundation for strategic learning.
B)  It occurs whenever managers receive feedback information from two information sources.
C)  It is provided in a traditional performance management system.
D)  It emphasizes only the effectiveness of implementation.E) A) and D)
F) C) and D)

Question 6

Activity-based responsibility accounting focuses on processes and uses both operational and financial measures.

Accepted Answer

A) True 
 B)False

Question 7

The number of units that can be produced in a given period of time is called

Accepted Answer

A)  turnover.
B)  cycle time.
C)  velocity.
D)  efficiency.E) None of the above
F) A) and B)

Question 8

Increasing customer value occurs when

Accepted Answer

A)  the customer receives more benefits.
B)  the customer perceives a greater gap between benefits and sacrifice.
C)  customer costs are reduced.
D)  none of the above.E) B) and D)
F) All of the above

Question 9

Which of the following is NOT a measure commonly used to evaluate asset utilization?

Accepted Answer

A)  return on investment
B)  economic value added
C)  market share
D)  all of the aboveE) None of the above
F) B) and C)

Question 10

Performance expectations must be established once objectives and measures have been executed and advertised.

Accepted Answer

A) True 
 B)False

Question 11

Compare and contrast activity-based measures and strategic-based measures.

Accepted Answer

Activity-based measures are concerned wi...

Question 12

Strategy translation means specifying objectives and percentage of revenues from sale of products.

Accepted Answer

A) True 
 B)False

Question 13

Activity-based responsibility accounting employs dynamic standards and emphasizes and supports continuous improvement.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not a strategic theme of the financial perspective?

Accepted Answer

A)  revenue growth
B)  asset utilization
C)  employee capability
D)  risk managementE) C) and D)
F) B) and C)

Question 15

A testable strategy can be constructed

Accepted Answer

A)  by prioritizing objectives.
B)  by sequencing if-then statements.
C)  by creating alternative scenarios.
D)  by creating lead measures.E) B) and C)
F) All of the above

Question 16

Directed continuous improvement is accomplished by linking initiatives to

Accepted Answer

A)  processes.
B)  strategy and mission.
C)  financial outcomes.
D)  measures.E) A) and D)
F) None of the above

Question 17

Activity-based evaluation and strategic-based evaluation incorporate some of the same elements. However, strategic-based responsibility adds some new elements to the common dimensions. What are the elements in common and what new elements are included?

Accepted Answer

Activity-based evaluation and strategic-...

Question 18

In a Balanced Scorecard framework, to ensure that balanced attention is given to all measures, incentive compensation is paid when:

Accepted Answer

A)  expected operational performance of a company meets the actual performance.
B)  expected financial performance of a company meets the actual performance.
C)  each strategic measure exceeds a prespecified minimum threshold value.
D)  each strategic measure equals a prespecified minimum threshold value.E) A) and B)
F) A) and C)

Question 19

Diversifying customers and product lines are initiatives important to

Accepted Answer

A)  revenue growth.
B)  cost reduction.
C)  asset utilization.
D)  risk management.E) A) and B)
F) B) and D)

Question 20

Lead measures are critical to strategy because

Accepted Answer

A)  they are based on actual activity.
B)  they are an independent part of the system.
C)  there should be a causal linkage with strategy.
D)  they are outcome measures.E) A) and D)
F) C) and D)

Exam 13: The Balanced Scorecard: Strategic-Based Control

Compare and contrast activity-based measures and strategic-based measures.

Correct AnswerverifiedActivity-based measures are concerned wi...View AnswerShow Answer

A manufacturing cell has the theoretical capability of producing 55,000 microchips per quarter. The conversion cost per quarter is $30,000. There are 5,000 production hours available within the cell per quarter. The theoretical velocity per hour is:

Correct AnswerverifiedShow Answer

Increasing customer value occurs when

Correct AnswerverifiedShow Answer

Performance expectations must be established once objectives and measures have been executed and advertised.

Correct AnswerverifiedShow Answer

Communicating strategy through measurements requires both scope and flexibility. Which of the following statements is true?

Correct AnswerverifiedShow Answer

Directed continuous improvement is accomplished by linking initiatives to

Correct AnswerverifiedShow Answer

In a Balanced Scorecard framework, to ensure that balanced attention is given to all measures, incentive compensation is paid when:

Correct AnswerverifiedShow Answer

Which of the following is NOT a measure commonly used to evaluate asset utilization?

Correct AnswerverifiedShow Answer

Activity-based responsibility accounting focuses on processes and uses both operational and financial measures.

Correct AnswerverifiedShow Answer

Which of the following is not a strategic theme of the financial perspective?

Correct AnswerverifiedShow Answer

Activity-based responsibility accounting employs dynamic standards and emphasizes and supports continuous improvement.

Correct AnswerverifiedShow Answer

Lead measures are critical to strategy because

Correct AnswerverifiedShow Answer

The number of units that can be produced in a given period of time is called

Correct AnswerverifiedShow Answer

Activity-based evaluation and strategic-based evaluation incorporate some of the same elements. However, strategic-based responsibility adds some new elements to the common dimensions. What are the elements in common and what new elements are included?

Correct AnswerverifiedActivity-based evaluation and strategic-...View AnswerShow Answer

Which of the following statements is true of a testable strategy?

Correct AnswerverifiedShow Answer

Which of the following is true of double-loop feedback?

Correct AnswerverifiedShow Answer

A testable strategy can be constructed

Correct AnswerverifiedShow Answer

Strategy translation means specifying objectives and percentage of revenues from sale of products.

Correct AnswerverifiedShow Answer

Diversifying customers and product lines are initiatives important to

Correct AnswerverifiedShow Answer

A balanced scorecard is designed to bring about organizational change. Which of the following is a means of alignment?

Correct AnswerverifiedShow Answer

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Activity-based measures are concerned wi...
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Activity-based evaluation and strategic-...
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