ExpertEasy1 markMultiple Choice
CPA · Question 21 · Area I: Business Analysis
Which of the following Key Performance Indicators (KPIs) would BEST measure the 'Internal Business Process' perspective of the Balanced Scorecard?
Which of the following Key Performance Indicators (KPIs) would BEST measure the 'Internal Business Process' perspective of the Balanced Scorecard?
Answer options:
A.
Return on Investment (ROI)
B.
Customer Retention Rate
C.
Cycle Time
D.
Employee Training Hours
How to approach this question
Map the KPI to the 4 perspectives: Financial (Money), Customer (Satisfaction), Internal Process (Efficiency/Quality), Learning & Growth (People/Systems).
Full Answer
C.Cycle Time✓ Correct
C
Cycle Time measures how long it takes to produce a product or service, which is a direct measure of internal process efficiency.
Common mistakes
Confusing Internal Process with Learning & Growth.
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