ECONOMICS

COST ACCOUNTING

BALANCED SCORECARDS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
In what year was the Balanced Scorecard methodology created?
A
2002
B
1998
C
1992
D
1993
Explanation: 

Detailed explanation-1: -The concept of BSCs was first introduced in 1992 by David Norton and Robert Kaplan, who took previous metric performance measures and adapted them to include nonfinancial information. BSCs were originally developed for for-profit companies but were later adapted for use by nonprofits and government agencies.

Detailed explanation-2: -The balanced scorecard, first proposed in the January-February 1992 issue of HBR (“The Balanced Scorecard-Measures that Drive Performance”), provides executives with a comprehensive framework that translates a company’s strategic objectives into a coherent set of performance measures.

Detailed explanation-3: -Robert Kaplan and David Nor-ton created the balanced scorecard approach in the early 1990s. Most traditional management systems focus on the financial performance of an organiza-tion.

Detailed explanation-4: -In their first book, “The Balanced Scorecard: Translating Strategy Into Action, ” Norton and Kaplan highlight many case studies of organizations that use the BSC to design a scorecard reflective of their individual strategies. But their research didn’t stop there.

Detailed explanation-5: -The Balanced Scorecard was originally developed by Dr. Robert Kaplan of Harvard University and Dr. David Norton as a framework for measuring organizational performance using a more balanced set of performance measures. Traditionally companies used only short-term financial performance as the measure of success.

There is 1 question to complete.