ACCA Applied Knowledge · Management Accounting · Performance measurement - overview
A company uses the balanced scorecard. Which of the following measures would normally be classified under the internal business process perspective?
The percentage of orders delivered without defects is an internal business process measure. It shows how well the company's own operations perform on quality. Customer satisfaction is a customer measure and revenue growth is a financial measure, so those options sit in different scorecard perspectives.
- APercentage of orders delivered without defectsCorrect
- BCustomer satisfaction survey score
- CRevenue growth compared with last year
- DNumber of new products launched by competitors
Explanation
The internal business process perspective looks at what the business must excel at internally, such as quality, cycle time and defect rates. Customer satisfaction belongs to the customer perspective, and revenue growth belongs to the financial perspective. Competitor launches are an external factor and not a scorecard measure of the firm's own processes.
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