Question

1. Which of the following is not a criticism of using ROI as the only performance measure?

• It may incentivize decisions that are effective at the division-level, but not necessarily at the enterprise-level.

• It may incentivize employees to act in ways that are consistent with the overall goals and objectives of the organization.

• It may be too reliant on subjective or arbitrary allocations of capital.

• It may incentivize short-term decisions at the expense of long-term planning.

2. One of the strategies of the business process perspective lens of the balanced scorecard is to improve the quality of the manufacturing process. Which of the following is not one of the measures?

• Number of on-time deliveries

• Scrap as a percentage of raw materials

• Percent of orders filled

• Machine downtime

3. A system that considers the earnings per sales dollar and the investment used to generate those sales dollars is called:

• The economic value added system.

• The DuPont system.

• The balanced scorecard system.

• The residual income system.

Answer 1