Problem 1-30 Balanced Scorecard (LO 1-3)Skip to question

[The following information applies to the questions displayed below.] Susan Lopez, a consultant with Deloitte & Young, has just begun an engagement at Four Corners Airlines, which is based in Santa Fe, New Mexico. The company has fallen on hard times of late despite record profits for the rest of the airline industry. Management is somewhat set in its ways and could probably use some "new blood," as the most recent hire to the firm's executive team was 12 years ago. In Lopez's first meeting with the team, the airline's chief executive officer commented that "all that mattered in this industry were load factorsthe percentage of seats sold on scheduled flights. If load factors were adequate, everything else would take care of itself." Lopez noted that while this measure was important, other, broader facets of operation were significant as well. She asked if any of the management team had heard of the balanced scorecard, and received dead silence as a response. Based on her experiences with other engagements, including two that involved airlines, Lopez was convinced that the balanced scorecard could provide benefits in helping to solve the airline's woes. After a presentation about the philosophy of the balanced scorecard, Four Corners Airlines' management team accepted her idea, feeling that a shift in operating philosophy was needed for survival.

Problem 1-30 Part 1

Required: 1-a. What is a balanced scorecard?

multiple choice

• The balanced scorecard is a business model which does not include operational effectiveness.
• The balanced scorecard is a business model which evaluates only the financial aspects of a business.
• The balanced scorecard is a business model that helps to assess a firm's competitive position and ensures that the firm is progressing toward long-term survival.

1-b. What are the balanced scorecard's typical key elements? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) check all that apply

• Financial measuresunanswered
• Customer measuresunanswered
• Internal business process measuresunanswered
• Measures of learning and growth