Balance Scorecard and Benchmarking
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CPA Auditing and Attestation (AUD) › Balance Scorecard and Benchmarking
The management of a company would do which of the following to compare and contrast its financial information to published information reflecting optimal amounts?
Utilize best practices
Budget
Benchmark
Forecast
Explanation
Benchmarking is the process of comparing and contrasting financial information.
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?
Benchmarking
Measuring the performance gap
Variance management
Standard measurement
Explanation
Measuring and evaluating relative to levels of performance is a prime example for benchmarking.
Which of the following is a financial measure of success in a balanced scorecard?
Sales growth
Staff morale
Cycle time
Market share
Explanation
The balanced scorecard can be benchmarked for success by a firm's sales growth metric.
Which of the following would be most impacted by the use of the percentage of sales forecasting method for budgeting purposes?
Common stock
Mortgages payable
Bonds payable
Accounts payable
Explanation
Of the items listed, A/P would be most impacted by the use of the percentage of sales forecasting method for budgeting purposes.
Which of the following ratios is appropriate for the evaluation of accounts receivable?
Current ratio
Days sales outstanding
Return on assets
Collection to debt ratio
Explanation
Among the ratios listed, the ratio that is appropriate for the evaluation of accounts receivable is the number of days sales are outstanding.
Of the following success factors in a balanced scorecard, which focuses on the retention of key employees?
Financial
Internal business processes
Customer satisfaction
Advancement of innovation and human resource development
Explanation
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.