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ZZZ is a divisionalised company that uses the balanced scorecard approach to monitor divisional performance.

ZZZ is a divisionalised company that uses the balanced scorecard approach to monitor divisional performance. Each measure on the scorecard is classified as green (if they are better than expected), amber (if expectations have been met) or red (if they are poorer than expected).

The Southern Division's scorecard shows that 90% of the measures are amber, 3% are green and 7% are red.

All of the red classifications are listed under the Learning and Growth perspective and have arisen largely because the division has lost a lot of staff to a major competitor who offered a better rate of pay.

Which THREE of the following statements are correct?

A.

The Southern Division's financial performance is acceptable.

B.

The numbers for the measures that have been classified as red and green are not necessarily indicative of overall performance.

C.

The Southern Division's managers should be asked to provide a commentary on the scorecard.

D.

The Southern Division's managers should be reprimanded for having only a small proportion of green classifications.

E.

The Southern Division's managers should be reprimanded for having red classifications.

CIMA P2 Summary

  • Vendor: CIMA
  • Product: P2
  • Update on: Jul 29, 2025
  • Questions: 202
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