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CIMA Advanced Management Accounting P2 Question # 20 Topic 3 Discussion

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CIMA Advanced Management Accounting P2 Question # 20 Topic 3 Discussion

P2 Exam Topic 3 Question 20 Discussion:
Question #: 20
Topic #: 3

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?
A.

It encourages them to focus mainly on short-term financial measures.

B.

It provides them with a range of performance measures to discourage a tendency to focus on only one measure.

C.

It provides them with clear guidance as to how customer satisfaction problems should be solved.

D.

It encourages them to make decisions that are in line with corporate objectives.

E.

It encourages them to identify, and deal with, problems at an earlier stage.

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Actual exam question for CIMA P2 exam by Riven221 at Aug 3, 2025, 12:00:00 AM

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