According to Field Research Conducted with Senior Executives in 60

question 29

Multiple Choice

According to field research conducted with senior executives in 60 companies,many firms do not identify and act on the correct nonfinancial measures.All of the following are among the major mistakes made by companies with respect to nonfinancial measures EXCEPT:

• A) Not linking measures to strategy
• B) Not validating
• C) Not setting the right performance targets
• D) Measuring incorrectly
• E) All of the above are major mistakes made by companies with respect to nonfinancial measures

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Definitions:

Employee Time Ticket

A record that tracks the amount of time an employee spends on various tasks, used for costing, payroll, or billing purposes.

Overhead Rate

A measure used to allocate manufacturing overhead costs to units of product based on a predetermined base.

Manufacturing Overhead

The indirect costs related to manufacturing that are not directly tied to a specific product, such as factory rent, maintenance, and utilities.

Job Cost Accuracy

The precision with which a company estimates and tracks the costs associated with specific jobs or projects.