WGU D196 Performance Measurement and Balanced
Scorecard Certification Exam Questions and Correct Answers
(Verified Answers) Plus Rationales 2026 Q&A | Instant
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1. Which of the following best describes the purpose of performance
measurement in managerial accounting?
A. Eliminating all business risks
B. Recording only financial transactions
C. Evaluating how effectively an organization achieves its goals
D. Preparing external financial statements
Answer: C. Evaluating how effectively an organization achieves its goals
Rationale: Performance measurement focuses on assessing whether
departments, managers, and employees are meeting organizational
objectives. It provides information needed for decision-making,
planning, and improving operations. Financial reporting, while
important, is not the primary purpose of performance measurement.
2. A balanced scorecard is designed to help organizations:
A. Focus exclusively on profits
,B. Measure performance using multiple perspectives
C. Eliminate the need for budgeting
D. Replace all accounting systems
Answer: B. Measure performance using multiple perspectives
Rationale: The balanced scorecard evaluates performance from several
perspectives, including financial, customer, internal processes, and
learning and growth. This approach prevents managers from focusing
only on short-term financial results.
3. Which balanced scorecard perspective focuses on employee skills
and organizational capabilities?
A. Financial perspective
B. Customer perspective
C. Internal business process perspective
D. Learning and growth perspective
Answer: D. Learning and growth perspective
Rationale: The learning and growth perspective examines employee
development, training, innovation, technology, and organizational
,culture. These factors support long-term improvement and future
success.
4. A company’s return on investment (ROI) is an example of which type
of performance measure?
A. Financial measure
B. Customer measure
C. Internal process measure
D. Nonfinancial measure
Answer: A. Financial measure
Rationale: ROI measures financial performance by comparing operating
income to invested assets. It is commonly used to evaluate profitability
and asset utilization.
5. Which of the following is a nonfinancial performance measure?
A. Net income
B. Return on investment
C. Customer satisfaction rating
D. Earnings per share
, Answer: C. Customer satisfaction rating
Rationale: Customer satisfaction is a qualitative or operational
measurement rather than a financial outcome. Nonfinancial measures
often provide early indicators of future financial performance.
6. The primary goal of the balanced scorecard is to:
A. Increase taxes paid by a company
B. Translate strategy into measurable objectives
C. Replace all financial statements
D. Reduce employee involvement
Answer: B. Translate strategy into measurable objectives
Rationale: The balanced scorecard connects organizational strategy
with specific performance goals and measurements. It allows managers
to track whether daily activities support long-term objectives.
7. Which perspective of the balanced scorecard asks, “How do
customers see us?”
Scorecard Certification Exam Questions and Correct Answers
(Verified Answers) Plus Rationales 2026 Q&A | Instant
Download Pdf
1. Which of the following best describes the purpose of performance
measurement in managerial accounting?
A. Eliminating all business risks
B. Recording only financial transactions
C. Evaluating how effectively an organization achieves its goals
D. Preparing external financial statements
Answer: C. Evaluating how effectively an organization achieves its goals
Rationale: Performance measurement focuses on assessing whether
departments, managers, and employees are meeting organizational
objectives. It provides information needed for decision-making,
planning, and improving operations. Financial reporting, while
important, is not the primary purpose of performance measurement.
2. A balanced scorecard is designed to help organizations:
A. Focus exclusively on profits
,B. Measure performance using multiple perspectives
C. Eliminate the need for budgeting
D. Replace all accounting systems
Answer: B. Measure performance using multiple perspectives
Rationale: The balanced scorecard evaluates performance from several
perspectives, including financial, customer, internal processes, and
learning and growth. This approach prevents managers from focusing
only on short-term financial results.
3. Which balanced scorecard perspective focuses on employee skills
and organizational capabilities?
A. Financial perspective
B. Customer perspective
C. Internal business process perspective
D. Learning and growth perspective
Answer: D. Learning and growth perspective
Rationale: The learning and growth perspective examines employee
development, training, innovation, technology, and organizational
,culture. These factors support long-term improvement and future
success.
4. A company’s return on investment (ROI) is an example of which type
of performance measure?
A. Financial measure
B. Customer measure
C. Internal process measure
D. Nonfinancial measure
Answer: A. Financial measure
Rationale: ROI measures financial performance by comparing operating
income to invested assets. It is commonly used to evaluate profitability
and asset utilization.
5. Which of the following is a nonfinancial performance measure?
A. Net income
B. Return on investment
C. Customer satisfaction rating
D. Earnings per share
, Answer: C. Customer satisfaction rating
Rationale: Customer satisfaction is a qualitative or operational
measurement rather than a financial outcome. Nonfinancial measures
often provide early indicators of future financial performance.
6. The primary goal of the balanced scorecard is to:
A. Increase taxes paid by a company
B. Translate strategy into measurable objectives
C. Replace all financial statements
D. Reduce employee involvement
Answer: B. Translate strategy into measurable objectives
Rationale: The balanced scorecard connects organizational strategy
with specific performance goals and measurements. It allows managers
to track whether daily activities support long-term objectives.
7. Which perspective of the balanced scorecard asks, “How do
customers see us?”
