A Subjective Performance Measure Is One Where

question 107

Multiple Choice

A subjective 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 the same.
• D) different managers will view the facts and come to different conclusions.

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Definitions:

Forward Exchange Contract

A financial derivative that locks in the exchange rate at which a currency can be bought or sold on a future date.

Fair Value Hedge

A hedge of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or an identified portion of such an asset, liability, or firm commitment, that is attributable to a particular risk and could affect profit or loss.

Local Currency Units

The monetary units issued by a country's central bank, used as the standard for financial transactions within that country.

Exchange Rates

The rate at which one currency can be exchanged for another, influencing how much of one currency you get for another.