ACCA Applied Knowledge · Management Accounting · Performance measurement - overview
Brightwater Ltd uses the balanced scorecard. Its objective is to lower the cost of poor quality. Which pairing of measure and perspective is correct?
The correct pairing is percentage of output reworked with the internal business process perspective, because rework measures the quality and efficiency of operations. Complaints belong to the customer perspective, revenue growth is financial and staff turnover fits innovation and learning.
- ACustomer complaints per 1,000 sales: financial perspective
- BPercentage of output reworked: internal business process perspectiveCorrect
- CRevenue growth: innovation and learning perspective
- DStaff turnover: customer perspective
Explanation
Rework rate measures the quality and efficiency of internal operations, so it sits in the internal business process perspective. Complaints are customer-focused, revenue growth is financial and staff turnover relates to learning and growth, so the other pairings are misclassified.
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