Almira Diane J.

Misa BSA-III

Balance Scorecard

1. According to Kaplan and Norton, what should be the main perspective of the
balanced scorecard?
a. Financial.
b. Customer.
c. Internal business process.
d. Learning and growth.
e. None of these.

2. Kaplan and Norton define a companys strategy as
a. defining the market and customers the company plans to serve.
b. defining the critical internal process needed to compete.
c. defining the individual and organizational capabilities needed to compete.
d. a. and b.
e. a., b. and c.

3. Kaplan and Norton define the generic internal value chain as
a. production and distribution.
b. production, distribution and post sales service.
c. innovation and operations.
d. innovation, operations and post sales service.
e. a. and c.

4. The metaphor used for the balanced scorecard by Kaplan and Norton is
a. a set of airplane instrument dials.
b. a flight simulator.
c. a radar screen.
d. a flight path.
e. none of the above.






5. As defined by Kaplan and Norton, leading indicators are always
a. financial.
b. non-financial.
c. drivers.
d. internal.
e. short term.

6. According to Norton and Kaplan, the balanced scorecard should be used as
a. a control system.
b. a diagnostic system.
c. a strategic system.
d. a. and b.
e. b. and c.

7. The various stakeholders include vendors, employees, distributors, customers,
stockholders and society. According to Norton and Kaplan, which of these should be
represented on the balanced scorecard?
a. all stakeholders are important and should be included.
b. all except society which is too general to be included.
c. only employees, customers and stockholders.
d. only those that are vital for achieving the companys strategy.
e. none of these.

8. Norton and Kaplan recommend that a separate balanced scorecard be developed for
a. each department within the company.
b. each product line within the company.
c. each division or business unit with the company.
d. the whole company.
e. none of these.

9. Norton and Kaplan argue that balanced scorecard measurements should
a. clearly indicate the person responsible.
b. be linked.
c. be reinforcing.
d. b. and c.
e. a., b. and c.

10. Advocates of which of the following theories would be the most likely to criticize the
balanced scorecard concept?
a. Japanese management theory.
b. Demings theory of management.
c. JIT management theory.
d. Goldratts theory of constraints.
e. CAM-Is management theory.

11. In the Balanced Scorecard, Kaplan and Norton describe four perspectives that
need to be balanced for companies to become and remain competitive. Which
perspective places more emphasis on investing in employees?
a. Financial.
b. Customer.
c. Internal business processes.
d. Learning & growth.

12. According to Kaplan & Norton, which of the balanced scorecard perspectives is first
in the chain of cause and effect relationships?
a. Financial.
b. Customer.
c. Internal business processes.
d. Learning & growth.


Answers:
1.) A
2.) E
3.) D
4.) B
5.) C
6.) C
7.) D
8.) C
9.) D
10.) D
11.) D
12.) D

Reference:
Management and Accounting Web
http://www.maaw.info/MAAWsExtraMCQuestions/BalancedScorecardMCQuestions.htm



















BALANCED SCORECARD

Ma. Camille M. De Leon

1. An increasingly popular approach that integrates financial and
customer performance measures with measures in the areas of
internal operations and learning and growth is known as:
A. the integrated performance measurement tool (IPMT).
B. the balanced scorecard.
C. gain sharing.
D. cycle efficiency.
E. overall quality assessment (OQA).

2. The typical balanced scorecard is best described as containing:
A. financial performance measures.
B. nonfinancial performance measures.
C. neither financial nor nonfinancial performance measures.
D. both financial and nonfinancial performance measures.
E. both financial and nonfinancial performance measures, the
latter often covering a broad range of perspectives such as
customers, internal operations, and learning and growth.

3. Swedish Cruise Lines (SCL), which operates in a very competitive
marketplace, is considering four categories of performance measures:
(1) profitability measures, (2) customer-satisfaction measures, (3)
efficiency and quality measures, and (4) learning and growth
measures. The company assigns one manger to each ship in its fleet
to oversee the ship's general operations. If SCL desired to adopt a
balanced-scorecard approach, which measures should the firm use in
the evaluation of its managers?
A. 1.
B. 1, 2.
C. 2, 3.
D. 1, 2, 4.
E. 1, 2, 3, 4.


4. When using a balanced scorecard, a company's market share is
typically classified as an element of the firm's:
A. financial performance measures.
B. customer performance measures.
C. learning and growth performance measures.
D. internal-operations performance measures.
E. interdisciplinary performance measures.


5. When using a balanced scorecard, which of the following is typically
classified as an internal-operations performance measure?
A. Cash flow.
B. Number of customer complaints.
C. Employee training hours.
D. Number of employee suggestions.
E. Number of suppliers used.

6. Which of the following questions would customer perspective of
balances scorecard attempt to answer?
A. how does the company continue to improve and learn?
B. how do customers view the company?
C. Which business process must the company excel in?
D. How does the company create value for its stakeholders?

7. The balanced scorecard internal operations perspective includes
A. customer complaints
B.number of engineering changes
C. market share
D. inventory turn over

8. Which of the following might be a performance measure for the
financial perspective of a balanced scorecard
A. percentage of on time deliveries by the organization
B. percentage of product defects
C. return on asset
D. percentage of market share held by the organization
9. The balanced scorecard approach does not require looking at
performance from which of the following perspectives?
A. Customer
B. Employees
C. Competitor
D. Internal business processes

10. In the pharmaceutical or food industries, quality control inspections
would most likely be viewed as
A. non- value- added activities
B. business-value-added activities
C. value added activities
D. process efficiency activities


REFUNCEL TORRES
1. The metaphor used for the balanced scorecard by Kaplan and Norton is
a. a set of airplane instrument dials.
b. a flight simulator.
c. a radar screen.
d. a flight path.
e. none of the above.
2. As defined by Kaplan and Norton, leading indicators are always
a. financial.
b. non-financial.
c. drivers.
d. internal.
e. short term.
3. Advocates of which of the following theories would be the most likely to
criticize the balanced scorecard concept?
a. Japanese management theory.
b. Demings theory of management.
c. JIT management theory.
d. Goldratts theory of constraints.
e. CAM-Is management theory.
4. Which of the following is not one of the main parts of the Kaplan-Norton
balanced scorecard concept? Balancing:
a. financial and non financial measurements.
b. cash flows and non cash flows.
c. short term and long term measurements.
d. leading and lagging indicators.
e. internal and external measurements.
5. Arrange the five measurements below in the order of cause and effect.
A. Improve customer loyalty.
B. Improve return on capital employed.
C. Improve repeat and expanded sales.
D. Improve cycle time.
E. Improve on time delivery to customer.
F. Improve employee skills.
a. B C A E D F
b. F E D C A B
c. F D E A C B
d. A D F E B C
e. C A E B D F
6. Advocates of which of the following theories would be the most likely to
criticize the balanced scorecard concept?
a. Japanese management theory.
b. Demings theory of management.
c. JIT management theory.
d. Goldratts theory of constraints.
e. CAM-Is management theory

www.maaw.info/MAAWsExtraMCQuestions/BalancedScorecardMCQues...
1. B
2. C
3. D
4. B
5. C
6. D
























Athaliah Grace Ancho
BSA-III
1. Which one of the following is not one of the Balanced Scorecards four
generic perspectives?
a. )innovation and learning
b.) marketing and advertising
c.) internal business processes
d.) financial
2. Which one of the following is a lag performance indicator?
a.) return on capital employed
b.) number of complaints received from customers
c.) output per employee
d.) number of training hours per employee
3. Which one of the following statements is true?
a.) Balanced Scorecards always have four perspectives
b.) Balanced Scorecards can only be updated on an annual basis
c.) Balanced Scorecards are a feedback mechanism
d.) Balanced Scorecards can be used in Not-for-Profit organisations

4. Which of the following statements is false?
Balanced scorecards:
a.) are one type of performance dashboard
b.) can be cascaded to different levels/parts of organisations
c.) cannot be used in conjunction with budgetary control systems
d.) can be used to produce strategy maps
5. Which of the following statements is correct?
a.) One fundamental idea of balanced scorecards is to increase the
number of performance indicators used to manage the business.
b.) The fundamental idea of balanced scorecards is to create
corporate strategy.
c.) Balanced scorecards always report using the same time periods
as the financial accounting system.
d.) Organisations sometimes use a traffic-light system on their
balanced scorecard to help them prioritise their activities
6. Brand loyalty is associated closely with:
a.) neither cost leadership nor product differentiation.
b.) both cost leadership and product differentiation.
c.) cost leadership but not product differentiation.
d.) product differentiation but not cost leadership.
7 .The percentage of manufacturing processes with real-time feedback is a
performance measure under which perspective in the balanced scorecard?
a.) Internal business process perspective
b.) Learning and growth perspective
c.) Financial perspective
d.) Customer perspective
8. Reengineering relates to which perspective in the balanced scorecard?
a.) Learning and growth perspective
b.) Internal business process perspective
c.) Customer perspective
d.) Financial perspective
9. In analyzing the change in a company's operating income from one year to
the next, which effect(s) is computed for the price-recovery component?
Revenue Effect / Cost Effect
a.) Yes / No
b.) Yes / Yes
c.) No / No
d.) No / Yes

10. If return on investment is a measure used on the balanced scorecard,
under which perspective would it be listed?
a.) Financial perspective
b.) Customer perspective
c.) Learning and growth perspective
d.) Internal business perspective





Answers:
1. b
2. a
3. d
4. c
5. d
6. d
7. b
8. b
9. b
10. a












Jenica E. Regino
BSA-III

1. According to Kaplan and Norton, what should be the main perspective of
the balanced scorecard?
a. Financial.
b. Customer.
c. Internal business process.
d. Learning and growth.
e. None of these.

2. Kaplan and Norton define a companys strategy as
a. defining the market and customers the company plans to serve.
b. defining the critical internal process needed to compete.
c. defining the individual and organizational capabilities needed to
compete.
d. a. and b.
e. a., b. and c.

3. Kaplan and Norton define the generic internal value chain as
a. production and distribution.
b. production, distribution and post sales service.
c. innovation and operations.
d. innovation, operations and post sales service.
e. a. and c.

4. The metaphor used for the balanced scorecard by Kaplan and Norton is
a. a set of airplane instrument dials.
b. a flight simulator.
c. a radar screen.
d. a flight path.
e. none of the above.

5. As defined by Kaplan and Norton, leading indicators are always
a. financial.
b. non-financial.
c. drivers.
d. internal.
e. short term.

6. According to Norton and Kaplan, the balanced scorecard should be used
as
a. a control system.
b. a diagnostic system.
c. a strategic system.
d. a. and b.
e. b. and c.

7. The various stakeholders include vendors, employees, distributors,
customers, stockholders and society. According to Norton and Kaplan, which
of these should be represented on the balanced scorecard?
a. all stakeholders are important and should be included.
b. all except society which is too general to be included.
c. only employees, customers and stockholders.
d. only those that are vital for achieving the companys strategy.
e. none of these.

8. Norton and Kaplan recommend that a separate balanced scorecard be
developed for
a. each department within the company.
b. each product line within the company.
c. each division or business unit with the company.
d. the whole company.
e. none of these.

9. Norton and Kaplan argue that balanced scorecard measurements should
a. clearly indicate the person responsible.
b. be linked.
c. be reinforcing.
d. b. and c.
e. a., b. and c.

10. Advocates of which of the following theories would be the most likely to
criticize the balanced scorecard concept?
a. Japanese management theory.
b. Demings theory of management.
c. JIT management theory.
d. Goldratts theory of constraints.
e. CAM-Is management theory.

11. In the Balanced Scorecard, Kaplan and Norton describe four
perspectives that need to be balanced for companies to become and remain
competitive. Which perspective places more emphasis on investing in
employees?
a. Financial.
b. Customer.
c. Internal business processes.
d. Learning & growth.

12. According to Kaplan & Norton, which of the balanced scorecard
perspectives is first in the chain of cause and effect relationships?
a. Financial.
b. Customer.
c. Internal business processes.
d. Learning & growth.

13. According to Kaplan & Norton, which of the balanced scorecard
perspectives serves as the focus of the other perspectives?
a. Financial.
b. Customer.
c. Internal business processes.
d. Learning & growth.

14. Which of the following is not one of the main parts of the Kaplan-Norton
balanced scorecard concept? Balancing:
a. financial and non financial measurements.
b. cash flows and non cash flows.
c. short term and long term measurements.
d. leading and lagging indicators.
e. internal and external measurements.

15. Arrange the five measurements below in the order of cause and effect.
A. Improve customer loyalty.
B. Improve return on capital employed.
C. Improve repeat and expanded sales.
D. Improve cycle time.
E. Improve on time delivery to customer.
F. Improve employee skills.







16. Advocates of which of the following theories would be the most likely to
criticize the balanced scorecard concept?
a. Japanese management theory.
b. Demings theory of management.
c. JIT management theory.
d. Goldratts theory of constraints.
e. CAM-Is management theory.

Answer:

1. A
2. E
3. D
4. B
5. C
6. C
7. D
8. C
9. D
10. D
11. D
12. D
13. A
14. B
15. C
16. D
































Ritta Maurice Ladiero
AIS/MAS
BSA-III

10 Balanced Scorecard Theory Questions
1. How do Kaplan and Norton define a strategy?
A strategy, according to Kaplan and his coauthors, is a set of
hypotheses about cause and effect relationships. Defining an
organization's strategy involves:
a. Defining the market the organization plans to serve - local,
national, global.
b. Defining the customer. Broad or narrow, age group, income level
etc.
c. Identifying the critical internal processes needed to capture and
satisfy those
customers.
d. Determining the individual and organizational
capabilities required in the
other perspectives.
2. What are the four perspectives of the balanced scorecard (BSC)?
-The Balanced Scorecard concept involves creating a set of
measurements for four strategic perspectives. These perspectives
include:
1) Financial
2) Customer
3) Internal business process and
4) Learning and growth.
The idea is to develop between four and seven measurements for
each perspective. Two graphic illustrations appear below to help
convey the idea.
3. The internal business process perspective relates to the generic
internal value chain. What are the parts of this chain and what are
some measurements for each part?
Financial -Return of Capital Employed, Economic value added, Sales
growth, Cash flow
Customer -Customer satisfaction, retention, acquisition, profitability,
market share
Internal business process -Includes measurements along the internal
value chain for:
Innovation - measures of how well the company identifies the
customers future needs.
Operations - measures of quality, cycle time, and costs.
Post sales service - measures for warranty, repair and treatment of
defects and returns.
Learning and growth -Includes measurements for:
People - employee retention, training, skills, morale.
Systems - measure of availability of critical real time information
needed for front line employees.
4. According to Kaplan and Norton, should the BSC be used as a control
system?
-Kaplan and Norton also emphasize that "the balanced scorecard
should be used as
is the difference between diagnostic measures a communication,
informing, and learning system, not as a controlling system."
5. What is the difference between diagnostic measures and strategic
measures?
-Kaplan and Norton make a distinction between diagnostic
measurements and strategic measurements.
Diagnostic measurements monitor whether something is in control. A
statistical process control chart with upper and lower limits is a good
example of a diagnostic type system that can be used for controlling a
process.
Strategic measurements define a strategy for competitive
excellence and future success. The balanced scorecard is a strategic
measurement system
6. What should multiple measurements on a scorecard consist of and
what should be the relationship between the measurements?
A strategy according to Kaplan and Norton is "a set of hypotheses
about cause and effect." The measurements on a balanced scorecard
should consist of a linked set of objectives and measurements that are
consistent and mutually reinforcing. The metaphor should be a flight
simulator rather than a collection of indicators on a dashboard. It
should make explicit the relationships among objectives and
measures. The chain of cause and effect should incorporate four
perspectives as follows:

Learning and growth Internal business process Customer
Financial.
They provide an example where improvements in employee skills
causes improvement in process quality and process cycle time, that in
turn improves on-time delivery, customer loyalty and subsequently
return on investment.
The balanced scorecard must contain the appropriate mixture of
outcome measures (lagging indicators) and performance drivers
(leading indicators).
Performance drivers - provide early indications about whether the
strategy is being implemented successfully.
Outcomes measures - help to reveal whether operational
improvements have been translated into enhanced financial
performance.
7. Should financial measurements be scrapped?
Critics argue that managers should focus on improving customer
satisfaction, quality, cycle times, employee skills, and motivation. The
financial numbers will take care of themselves.
Kaplan and Norton contend that not all companies can translate such
improvements into financial benefits. Fundamental improvements only
benefit a company when they can be translated into improved sales,
reduced operating expenses, or higher asset utilization. Therefore, the
scorecard should contain a strong emphasis on financial outcomes.
The balanced scorecard links fundamental improvements without the
distortions that come from an exclusive focus on improving short term
financial results.
8. Are four perspectives sufficient?
The four perspectives provide a template, not a strait jacket.
Companies should include perspectives on the scorecard as needed
by their unique circumstances. The scorecard should include
measurements that are vital to the success of the unit's strategy. The
measures that appear on the scorecard should be fully integrated into
the chain of cause-and-effect relationships that describe the trajectory
of the strategy.
9. What does a company or organizational strategy consist of?
Following Porter's concept, an organization's strategy includes:
1) Choosing the market and customers the company or business unit
expects to serve.
2) Identifying the critical internal processes that the company or
business unit must excel at to capture and satisfy those customers.
3) Determining the individual and organizational capabilities required
to achieve the objectives in the other perspectives, i.e., internal,
customer and financial.
10. Is the purpose of a balanced scorecard to formulate strategy or
implement strategy?
The balanced scorecard is mainly a technique for implementing
strategy. It is a mechanism for translating strategy into specific
objectives, measures, and targets and for monitoring how the strategy
is implemented in the future.