1. One reason financial measures are used to evaluate performance is that they are easily
quantifiable.
2. One disadvantage of using nonfinancial measures to evaluate performance is that they are
only available on a monthly, quarterly, or annual basis.
3. One question that an organization’s mission statement should answer is how the
organization will evaluate its performance relative to its competitors.
4. In general, all managers in a given organization are responsible for the same things and
should be evaluated using the same financial and nonfinancial measures.
5. In general, performance measures—financial and nonfinancial—should relate to what
managers at different levels control.
6. A business model is a description of how different levels and employees in the
organization must perform for the organization to achieve its goals and objectives.
7. In general, the use of multiple measures to evaluate performance is better than the use of
a single performance measure.
8. A balanced scorecard is basically a balance sheet prepared using nonfinancial measures.
9. The concept of a balanced scorecard is to measure how well the organization is doing
from the view of employees, suppliers, customers, business partners, and the community, as well
as the shareholders.
10. A balanced scorecard uses only nonfinancial measures to determine how well the
organization is doing in view of competing stakeholder concerns.
11. Continuous improvement involves the search for and implementation of the best way to do
something as practiced by other organizations or in other parts of one’s own organization.
12. One of the important guidelines of benchmarking is to not benchmark
everything
at the
best-in-the-business level; no organization can be the best at
everything
.
13. The primary objective of benchmarking is to evaluate performance of an activity,
operation, or organization relative to the performance by other companies.
14. Manufacturing cycle time is the total time involved in processing, moving, storing, and
inspecting a good or providing a service.
15. Improving the efficiency of the manufacturing cycle involves decreasing the time spent
processing a good.
16. The number of defective units is an example of a subjective performance measure.
17. Partial factor productivity is the ratio of the value of output to the value of all key inputs.
18. One advantage of nonfinancial measures is that managers directly involved in operations
are likely to understand them.
19. Employee involvement in setting performance objectives is likely to increase the
employee’s commitment to the organization.
20. Employees empowered with real decision-making authority are more likely to be more
responsive to customer concerns.
21. Which of the following statements is (are) true regarding financial measures?
(A) One disadvantage of using financial measures to evaluate performance is that they are
typically reported on a monthly, quarterly, or annual basis.
(B) One reason financial measures are used to evaluate performance is that they are easily
quantifiable.
22. A description of an organization’s values, definition of its responsibilities to stakeholders,
and identification of its major strategies is called its:
23. Which of the following nonfinancial measures would
not
be used to evaluate a middle
manager’s performance?
24. A business model attempts to minimize problems associated with:
25. Which of the following statements is (are) false regarding financial measures?
(A) In general, the use of multiple measures to evaluate performance is better than the use of a
single performance measure.
(B) Managers evaluated using multiple measures will most likely act differently than managers
evaluated using single measures.
26. A balanced scorecard is a set of:
27. In general, a balanced scorecard is used to evaluate an organization’s performance using:
28. One of the results in using balanced scorecards is a shift from a focus on financial results
to a focus on:
29. Which of the following balanced scorecard perspectives focuses on quality and process
improvement?
30. Which of the following balanced scorecard perspectives focuses on customer service
issues?
31. Which of the following balanced scorecard perspectives focuses on shareholder’s
interests?
32. Which of the following balanced scorecard perspectives focuses on employee
development?
33. In the balanced scorecard, the financial perspective addresses which of the following
questions?
34. In the balanced scorecard, the internal business process perspective addresses which of
the following questions?
35. In the balanced scorecard, the learning and growth perspective addresses which of the
following questions?
36. In the balanced scorecard, the customer perspective addresses which of the following
questions?
37. Which of the following items is
not
part of the continuous improvement philosophy?
38. Benchmarks are used to evaluate the performance of an activity or operation relative to
other organizations or other parts of one’s own organization. Which of the following is
not
a
guideline for using benchmarks to evaluate performance?
39. Which of the following statements is (are) false?
(A) Internal, regional, and local benchmarks should be used for the most important processes and
activities in an organization.
(B) In general, the use of multiple measures to evaluate performance is better than the use of a
single performance measure.