Question

Question: An accounting approach to reflect the needs of each stakeholder is called this.

Short answer

Answer

The balanced scorecard represents the measurements of each stakeholder, such as the government, consumers, suppliers, internal staff, etc, to the specified objectives. Every participant from the process, the financial department, and the consumers may outline their requirements, objectives, and initiatives.

Step-by-step solution

Introduction

Stakeholders are individuals or groups who make choices based on financial information. Stockholders, creditors, governments and regulatory organizations, customers, managers, and other staff are all examples of stakeholders. A company's stockholders are its owners.

Analyze

Accountants established the balanced scorecard technique, which represents the particular demands of each stakeholder in terms of performance evaluation. The scorecard includes not only financial measures, but also customer, business process, and learning measures.

Below table is an example of a balanced scorecard:

Each perspective contributes to the clarification of strategy and the alignment of stated aims in measurable form. Every participant from the process, the financial department, and the consumers may outline their requirements, objectives, and initiatives.