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ACCA Strategic Professional · Advanced Performance Management · Non-financial performance measurement

Dovecote Hotels' managers complain that their scorecard has 38 measures and no one knows which matter. Which criticism of the balanced scorecard does this best illustrate?

This illustrates the criticism that the scorecard can become overloaded with too many measures, so managers lose focus on what matters. It does include customer and non-financial measures, and it is not limited to the public sector.

  1. AIt ignores the interests of customers
  2. BIt can become overloaded with measures, causing loss of focusCorrect
  3. CIt cannot include non-financial indicators
  4. DIt applies only to public sector bodies

Explanation

A common weakness is proliferation of measures, which dilutes focus and makes priorities unclear. The scorecard explicitly includes customer and non-financial measures, and it is used in all sectors, so the other options are false.

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