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What are the four perspectives of the balanced scorecard? Briefly describe each.

Short Answer

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  • How are we seen by our shareholders?
  • What do consumers think about us?
  • Which business process must we excel at in order to meet our customers' and financial goals?
  • How can we maintain our progress and add value?

Step by step solution

01

Meaning Balanced Scorecard

Companies use a balanced scorecard as a vital arranging system to arrange their activities, merchandise, and administrations, communicate around their destinations, and plan their ordinary operations.

02

Four perspectives of the balanced scorecard

There are four approaches to the Balancing Scorecard: commerce, financial, customer, and internal learning and development.

  1. The financial perspective helps managers decide how they appear to their shareholders.
  2. Managers can evaluate how customers view us using the customer's perspective.
  3. The theme of "Which commerce process must exceed expectations to achieve customer and financial goals" is from an inside company perspective.
  4. "How can we move forward to create and strive for value?" The issue of assessment is designed from the point of view of learning and development.

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PURE LIFE, INC. Income Statement For the Year Ended December 31, 2018 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses 2,300,000 2,000,000 300,000 (34,000) 266,000 3,700,000 \( 6,000,000 Operating Income Interest Expense Other Income and (Expenses): Income Before Income Tax Expense Income Tax Expense Net Income 93,100 \) 172,900

PURE LIFE, INC. Comparative Balance Sheet As of December 31, 2018 and 2017 Assets 2018 2017 Cash Accounts Receivable Supplies Property, Plant, and Equipment, net Patents, net Total Assets Accounts Payable Short-term Notes Payable Long-term Notes Payable Common Stock, no Par Retained Earnings Total Liabilities and Stockholdersโ€™ Equity Liabilities and Stockholdersโ€™ Equity \( 62,000 200 204,000 101,000 \) 394,000 26,800 \( 76,000 600 305,000 163,000 \) 606,000 61,400 52,000 \( 31,000 126,500 169,000 15,500 \) 394,000 148,000 \( 29,000 196,000 205,500 27,500 \) 606,000

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