An Objective Performance Measure Is One Where

question 84

Multiple Choice

An objective performance measure is one where:

• A) different people will agree as to the appropriateness of a measure.
• B) different people will agree as to the method to calculate the measure.
• C) different managers will calculate a measure differently.
• D) different managers will view the facts and come to different conclusion.

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Definitions:

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, used to transfer amounts from one account to another.

Profit and Loss Ratio

A financial metric that measures a company's profitability by comparing its profits and losses over a specific period.

Other Assets

Assets that do not fit into the standard categories of current or long-term assets, often including long-term investments, patents, or deposits.

Working Paper

Documentation created by accountants during an audit or financial analysis, containing the details and evidence supporting their conclusions.