In considering the business from the customer perspective using the balanced scorecard, company performance is essential.

41.

In considering the business from the customer perspective using the balanced scorecard, company performance is essential.    TRUE How a company is performing from the perspective of its customers is a top priority for management. The balanced scorecard requires that managers translate their general mission statements on customer service into specific measures that reflect the factors that really matter to customers.

AACSB: Analytic Blooms: Understand Learning Objective: 03-07 The value of the "balanced scorecard" in recognizing how the interests of a variety of stakeholders can be interrelated. Level of Difficulty: 2 Medium Topic: Evaluating Firm Performance: Two Approaches

42.

In considering the business from the internal business perspective using the balanced scorecard, customer-based measures must be translated into indicators of what the firm must do internally to meet customer expectations.    TRUE Customer-based measures are important. However, they must be translated into indicators of what the firm must do internally to meet customer expectations. The internal measures should reflect business processes that have the greatest impact on customer satisfaction.

AACSB: Analytic Blooms: Understand Learning Objective: 03-07 The value of the "balanced scorecard" in recognizing how the interests of a variety of stakeholders can be interrelated. Level of Difficulty: 2 Medium Topic: Evaluating Firm Performance: Two Approaches

43.

In considering the business from the internal business perspective using the balanced scorecard, periodic financial statements are used to indicate the consequences of improved quality, response time, productivity, and innovative products. These consequences include improved sales.    TRUE Measures of financial performance indicate whether the company strategy, implementation, and execution are indeed contributing to bottom-line improvement. Typical financial goals include profitability, growth, and shareholder value. Periodic financial statements remind managers that improved quality, response time, productivity, and innovative products benefit the firm only when they result in improved sales, increased market share, reduced operating expenses, or higher asset turnover.

AACSB: Analytic Blooms: Understand Learning Objective: 03-07 The value of the "balanced scorecard" in recognizing how the interests of a variety of stakeholders can be interrelated. Level of Difficulty: 2 Medium Topic: Evaluating Firm Performance: Two Approaches