Q24-12RQ - Horngren'S Financial And Managerial Accounting

Question

How is the use of a balanced scorecard as a performance evaluation system helpful to companies?

Step-by-Step Solution

Answer

Answer

The balanced scorecard represents a major shift in corporate performance measurement.

Step 1: Meaning of Balanced scorecard

Companies use a balanced scorecard as a vital arranging system to arrange their activities, merchandise, and administrations, communicate around their destinations, and plan their ordinary operations.

Step 2: Use of a balanced scorecard as a performance evaluation system helpful to companies

A critical change in how businesses survey the balanced risks to their execution. Companies get it that budgetary markers are fair one of a few execution pointers, as restricted to employing them as the as it were the benchmark. Observing working and standard budgetary measurements gives supervisors an "adjusted" viewpoint of the business.