Respond that the following statements are TRUE or FALSE:

1) Key performance indicators (KPIs) are summary performance measures that help managers assess whether the company is achieving its goals.

2) A good balanced scorecard focuses only on lead indicators, because lag indicators are not important for the scorecard.

3) The flexible budget uses budgeted costs at the actual level of activity.

4) Smaller variances signal that operations are close to target and do not require management's immediate attention.

5) Responsibility reports for revenue centers show all costs incurred by the department and are useful when management needs to know the total cost of operating the department.

Answer rating: 100% (QA)

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