When a Performance Indicator Can't Be Stated in Quantifiable Terms

question 19

Multiple Choice

When a performance indicator can't be stated in quantifiable terms, managers should __________.

• A) use objective measures
• B) have no standards at all
• C) ignore the control function
• D) use subjective measures

---

Definitions:

Outside Supplier

An outside supplier is an external entity that provides goods or services to a company, typically not affiliated with the company’s internal supply chain.

Fixed Manufacturing Overhead

Costs related to the production process that do not change with the volume of production, such as salaries of manufacturing supervisors and rent for the factory.

Direct Labor

The wages and other costs for labor directly involved in the production of goods.

Differential Cost

This refers to the difference in total cost between two alternatives in a decision-making process.