Balance Scorecard and Benchmarking - CPA Business Environment and Concepts (BEC)

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Question

The management of a company would do which of the following to compare and contrast its financial information to published information reflecting optimal amounts?

Answer

Benchmarking is the process of comparing and contrasting financial information.

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Question

What is the process by which products and services of a business entity are measured and evaluated relative to the best possible levels of performance?

Answer

Measuring and evaluating relative to levels of performance is a prime example for benchmarking.

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Question

Which of the following is a financial measure of success in a balanced scorecard?

Answer

The balanced scorecard can be benchmarked for success by a firm's sales growth metric.

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Question

Which of the following would be most impacted by the use of the percentage of sales forecasting method for budgeting purposes?

Answer

Of the items listed, A/P would be most impacted by the use of the percentage of sales forecasting method for budgeting purposes.

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Question

Which of the following ratios is appropriate for the evaluation of accounts receivable?

Answer

Among the ratios listed, the ratio that is appropriate for the evaluation of accounts receivable is the number of days sales are outstanding.

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Question

Of the following success factors in a balanced scorecard, which focuses on the retention of key employees?

Answer

Through the advancement of innovation and the learning and growth of employees, a firm can strive toward retaining key employees which is beneficial for future success.

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