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CMA Intermediate · Management Accounting · Responsibility Accounting

A company uses a Balanced Scorecard. Which measure below belongs to the Internal Business Process perspective?

Manufacturing cycle time belongs to the Internal Business Process perspective, because it measures how efficiently the firm's own operations run. Retention is a customer measure, return on capital is financial, and training hours relate to learning and growth.

  1. ACustomer retention rate
  2. BReturn on capital employed
  3. CManufacturing cycle timeCorrect
  4. DEmployee training hours per person

Explanation

Manufacturing cycle time measures efficiency of internal operations, hence internal business process. Customer retention is the customer perspective, return on capital employed is financial, and training hours fall under learning and growth.

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