Strategic cost management is a common item found on the agenda of many board meetings of today$$s organizations, as it aims to create value for shareholders and improve the organization$$s competitive advantage in the market. An increasing number of organizations in many countries have adopted or are in the process of implementing the balanced scorecard $($BSC$)$ as a system of strategic management and performance measurement.

REQUIRED:

The finance director of your company, Mr$.$ Chesco, is writing a detailed report to the president on how the implementation of BSC helps to create value and reduce costs in organizations. He would like your assistance in providing the following information:

a$)$ Discuss the nature and characteristics of the BSC$.$

b$)$ Discuss FOUR benefits of implementing the BSC$.$

c$)$ Identify FOUR common problems with implementing the BSC