Asked by
Abhinav Gupta
on Dec 17, 2024Verified
Waterfield Company has three decentralized segments. Executive managers are looking for a way to measure the performance of each segment. Which of the following metrics might be used for this purpose?
A) the operating cash flows for the entire company
B) the residual income of each segment
C) the number of training sessions provided to employees in each segment
D) the material quantity variance in each segment
Decentralized Segments
Parts of an organization that operate independently with their decision-making processes, instead of being centrally managed.
Residual Income
The excess of operating income over a minimum acceptable operating income.
Operating Cash Flows
Operating cash flows refer to the cash generated from the normal operations of a business, including cash receipts and payments for goods, services, and other routine company activities.
- Decide on appropriate performance metrics for the distinct perspectives of the balanced scorecard.
Verified Answer
SB
Learning Objectives
- Decide on appropriate performance metrics for the distinct perspectives of the balanced scorecard.