Question

On a balanced scorecard, each of the following is an example of the customer perspective measure except

A. Number of customer complaints.

B. Time taken to fulfill orders.

C. Customer retention.

D. Economic value-added.

Answer 1

Answer: D) Economic Value - added

explanation

Balanced score Card approach is one of the performance metric tool in the strategic management .it is used to identify and improve various internal functions and resulting outcomes . it is used for making various decisions on financial , customer related, internal process related decisions .

Balanced score card have the four main following perspectives

1) financial perspective : it is used to know the financial performance and achieving the financial goals . it has the following measures like sales growth, return on assets , residual income , operating income , cash flow from operations etc

2) customer perspective : it is used to identify and improve customer services .it has the following measures like customer satisfaction . customer retention , market share ,on time delivery number of customer complaints and time taken to fulfill orders etc

3) internal processes: it is used to improve the company internal processes .it has the following measures like material turnover, lead time, material supplies , shortages ,etc

4) growth and learning perspective ; it is used to know how effectively employees using the available information and it is measured through the training and the knowledge resources .

number of customer complaints is a customer perspective measure on the balanced score card

time taken to fulfill orders is a customer perspective measure on the balanced score card

customer retention is a customer perspective measure on the balanced score card

Economic value - added is not a customer perspective measure on the balanced score card. it is the financial measure used to know the financial performance of the business .