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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Abraham

12 days ago

I believe option E is crucial as it encourages managers to address issues early on before they escalate.

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Rosalyn

14 days ago

I agree with Zona. Option D is also important as it ensures that managers align their decisions with the overall goals of the organization.

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Zona

16 days ago

I think option B is valid because having a range of performance measures can prevent managers from focusing on just one aspect.

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