Which aspect is NOT a key element of a balanced scorecard?

The correct choice indicates that depreciation increases do not represent a key element of a balanced scorecard. The balanced scorecard framework is a strategic management tool used to translate an organization’s vision and strategy into a set of performance measures across multiple perspectives. It typically includes factors such as short-term financial performance, strategic long-term planning, and stakeholder perspectives, as they reflect a broader set of criteria beyond just financial metrics.

Short-term financial performance is included to assess immediate financial outcomes, while strategic long-term planning is vital for guiding the organization toward its future objectives. Consideration of all stakeholder perspectives ensures that the organization's strategy aligns with the needs and expectations of customers, employees, shareholders, and the broader community, creating a comprehensive overview of performance.

In contrast, depreciation increases are an accounting concept that impacts financial statements but does not, on its own, capture strategic or operational effectiveness, stakeholder satisfaction, or long-term goals. Therefore, it does not fit as a key element of a balanced scorecard, highlighting the importance of evaluating multiple aspects of organizational performance rather than focusing solely on financial accounting measures.