Performance measurement — ACCA Practice Question 32

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'.

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?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA MA — Management Accounting Practice Exam 6

More questions from this exam

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?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA MA — Management Accounting Practice Exam 6

More questions from this exam

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?