$$\text { Reference: 12-09 }$$ The Northern Division of Gordon Company Reported the Following Data

question 86

Multiple Choice

$$\text { Reference: 12-09 }$$ The Northern Division of Gordon Company reported the following data for last year: $$\begin{array} { | l | l | } \hline \text { Sales } & \$ 900,000 \\\hline \text { Stockholders' equity } & \$ 320,000 \\\hline \text { Operating expenses } & \$ 700,000 \\\hline \text { Average operating assets } & \$ 500,000 \\\hline \text { Interest expense } & \$ 50,000 \\\hline \text { Tax expense } & \$ 60,000 \\\hline \text { Minimum required rate of return } & 15 \% \\\hline\end{array}$$
-Which of the following are potential benefits of using multi-dimensional performance reporting?
I. Managers are less likely to miss facets of performance that impact financial results.
II. Performance measures can be more easily refined as strategies are changed and a better understanding of what works and what doesn't work is obtained.
III. In developing the system managers will focus on understanding cause and effect relationships in the way the business operates resulting in the discovery of opportunities for improvements.

• A)Only II and III.
• B)Only I and III.
• C)I, II and III.
• D)Only I and II.

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Definitions:

Organization

A structured group of individuals working together towards shared goals or objectives, often formalized through roles and hierarchies.

Risk Taking

The action of engaging in activities that involve uncertainty or danger for potential gain.

Entrepreneurial Culture

An organizational culture that fosters innovation, risk-taking, and proactiveness in identifying and exploiting new business opportunities.

Measurable Goals

Objectives that can be quantified or assessed using specific criteria to evaluate the progress or success.