Which of the following is offered by a balanced scorecard?

• A. A comprehensive framework for measuring organizational performance from multiple perspectives
• B. A process for reconciling bank statements
• C. A method for preparing financial statements in accordance with GAAP
• D. A tool for calculating depreciation expense

Answer: (A)

Verified step by step guidance

1. Understand the concept of a balanced scorecard: It is a strategic management tool that provides a comprehensive framework for measuring organizational performance from multiple perspectives, such as financial, customer, internal processes, and learning and growth.
2. Eliminate the incorrect options: A balanced scorecard is not related to reconciling bank statements, preparing financial statements in accordance with GAAP, or calculating depreciation expense. These are separate accounting processes and tools.
3. Focus on the correct option: The balanced scorecard emphasizes a holistic approach to performance measurement, integrating both financial and non-financial metrics to align organizational activities with strategic objectives.
4. Recognize the importance of multiple perspectives: The balanced scorecard ensures that organizations do not solely focus on financial outcomes but also consider customer satisfaction, internal efficiency, and employee development.
5. Conclude that the correct answer is: 'A comprehensive framework for measuring organizational performance from multiple perspectives,' as this aligns with the purpose and function of a balanced scorecard.