CIMA Exam CIMAPRO19-P02-1 Topic 6 Question 88 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 88
Topic #: 6

An organization uses a balanced scorecard approach to performance measurement, both at the corporate level and to assess the performance of each of its responsibility centre managers.

Which THREE of the following statements are valid in respect of the effect of this approach on the behavior of the responsibility centre managers?

AIt encourages them to focus mainly on short-term financial measures.

BIt provides them with a range of performance measures to discourage a tendency to focus on only one measure.

CIt provides them with clear guidance as to how customer satisfaction problems should be solved.

DIt encourages them to make decisions that are in line with corporate objectives.

EIt encourages them to identify, and deal with, problems at an earlier stage.

Show Suggested Answer

Suggested Answer: A, C, D

by Alisha at May 18, 2024, 11:17 PM

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Harris

7 days ago

The balanced scorecard approach seems like a double-edged sword. While it provides a range of measures, I worry it could lead to managers fixating on short-term financial goals instead of the bigger picture.

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