ACCA Applied Knowledge · Management Accounting · Performance measurement - application
Which of the following is a measure that would normally be placed in the innovation and learning perspective of the balanced scorecard?
Percentage of revenue from products launched in the last two years fits the innovation and learning perspective, because it indicates how well the organisation develops new products and improves. The other measures relate to financial, customer and internal process perspectives respectively.
- AReturn on capital employed
- BPercentage of revenue from products launched in the last two yearsCorrect
- CCustomer retention rate
- DAverage order processing time
Explanation
Revenue from recently launched products shows the ability to innovate and develop new offerings, which is the innovation and learning perspective. ROCE is financial, customer retention is customer, and order processing time is an internal process measure.
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