Which of These Is a Potential Problem Associated with Using

question 71

Multiple Choice

Which of these is a potential problem associated with using only quantitative criteria for selecting strategies?

• A) Most quantitative criteria are geared to long-term objectives rather than annual objectives.
• B) Different accounting methods can provide different results on many quantitative criteria.
• C) Intuitive judgments are almost never used in deriving quantitative criteria.
• D) Quantitative criteria include human factors that may be underlying causes of declining performance.
• E) Quantitative criteria are not useful for comparisons of the firm's performance over different periods of time.

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Definitions:

Worth

The value or importance of something, often measured in terms of money or utility.

Marginal Utility

The additional satisfaction or utility received by a consumer from consuming one more unit of a good or service.

Consumer Surplus

The divergence between the sum consumers are prepared and financially capable to pay for a good or service and the sum they actually disburse.

Marginal Utility

The extra pleasure or benefit received from using an additional unit of a product or service.