Analyzing the Use of Balanced Scorecard Technique in Business
VerifiedAdded on 2020/04/13
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AI Summary
This report provides an in-depth analysis of the balanced scorecard technique, a crucial management accounting tool used to measure business performance from multiple perspectives. It begins with an introduction to the balanced scorecard, explaining its four key perspectives: customer, internal, learning and growth, and financial. The report highlights the evolution of the balanced scorecard as a response to the inadequacies of traditional performance measurement systems, emphasizing the need for a balanced approach that considers both financial and operational aspects. It then explores the benefits of adopting the balanced scorecard, such as meeting various managerial needs and preventing sub-optimization. The report also addresses the risks and limitations associated with the technique, such as its potential to overlook certain perspectives and its lack of standardized performance goals. Finally, the report concludes by emphasizing the importance of the balanced scorecard in measuring business performance, despite the challenges involved in its implementation.
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