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CMA Final · Strategic Performance Management and Business Valuation · Performance Measurement, Evaluation and Improvement Tools

In a Balanced Scorecard framework, which of the following measures would normally be placed under the Internal Business Process perspective?

Order-to-delivery cycle time is an Internal Business Process measure because it shows how efficiently the firm's operations convert orders into deliveries. Customer retention is a customer measure, ROCE is financial, and training hours relate to learning and growth in the Balanced Scorecard.

  1. ACustomer retention rate
  2. BOrder-to-delivery cycle timeCorrect
  3. CReturn on capital employed
  4. DEmployee training hours per head

Explanation

The Internal Business Process perspective tracks how efficiently core operations run, such as cycle time, defect rates and process yield. Customer retention belongs to the Customer perspective, ROCE to the Financial perspective, and training hours to Learning and Growth.

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