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CA Final · Integrated Business Solutions (Multidisciplinary Case Study with Strategic Management) · Strategic Cost & Performance Management

Case: Kaveri Foods Ltd, a Pune-based packaged snack maker, adopted a Balanced Scorecard. Its measures include: return on capital employed, percentage of orders delivered on time, employee training hours per head, and number of new products launched per year. Which of these measures belongs to the Financial perspective of the Balanced Scorecard?

Return on capital employed is the Financial perspective measure. It expresses profitability relative to the capital invested. On-time delivery, training hours and new product launches relate to customer or internal process, learning and growth, and innovation perspectives respectively, not to financial results.

  1. AReturn on capital employedCorrect
  2. BPercentage of orders delivered on time
  3. CEmployee training hours per head
  4. DNumber of new products launched per year

Explanation

Return on capital employed is a result expressed in monetary terms, so it is a Financial perspective measure. On-time delivery is an internal business process or customer measure, training hours belong to Learning and Growth, and new product launches reflect innovation (internal process).

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