ExpertEasy2 marksMultiple Choice
ACCA · Question 32 · Performance measurement
Section A
BioGen, a biotech firm, uses the Balanced Scorecard to measure performance.
Which of the following metrics would be classified under the 'Innovation and Learning' perspective?
Section A
BioGen, a biotech firm, uses the Balanced Scorecard to measure performance.
Which of the following metrics would be classified under the 'Innovation and Learning' perspective?
Answer options:
A.
Return on Capital Employed (ROCE).
B.
Number of customer complaints resolved within 24 hours.
C.
Percentage of total revenue generated from new products launched in the last 12 months.
D.
Unit cost of manufacturing the primary biotech drug.
How to approach this question
The Balanced Scorecard has 4 perspectives: Financial, Customer, Internal Processes, and Innovation/Learning. Look for the metric related to growth, new ideas, or employee training.
Full Answer
C.Percentage of total revenue generated from new products launched in the last 12 months.✓ Correct
The Balanced Scorecard translates strategy into four perspectives:
1. Financial (e.g., ROCE)
2. Customer (e.g., complaints)
3. Internal Business Processes (e.g., manufacturing efficiency)
4. Innovation and Learning (e.g., training hours, revenue from new products). Revenue from new products directly measures the firm's ability to innovate and learn.
Common mistakes
Placing new product revenue in the Financial perspective simply because it involves 'revenue'.
Practice the full ACCA MA — Management Accounting Practice Exam 6
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