Which of the Following Statements Comparing Activity-Based Performance and Strategic-Based

question 68

Multiple Choice

Which of the following statements comparing activity-based performance and strategic-based performance evaluation is NOT true?

• A)Strategic-based performance evaluation expands the set of metrics.
• B)Only strategic-based performance evaluation leads to cost reductions.
• C)Only strategic-based performance standards set stretch targets for all four perspectives.
• D)Both systems encourage quality improvements.

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Definitions:

Accrued Interest

Accrued Interest is the interest that has accumulated on a bond or loan since the last interest payment date but has not yet been paid.

Liquidity

The measure of how quickly and easily an asset can be converted into cash without significant loss of value.

Current Liabilities

Current liabilities are a company's debts or obligations that are due to be paid to creditors within one fiscal year.

Notes Payable

Written promises to pay a specified amount of money, typically with interest, by a certain date.