To Make Effective Trade-Offs Among the Attributes of Performance Measures

question 43

Multiple Choice

To make effective trade-offs among the attributes of performance measures, organizations often use:

• A)A combination of performance measures.
• B)Only financial performance measures.
• C)Avoid using more than one measure.
• D)Select a single performance measure that possesses of the characteristics of an effective performance measure.
• E)None of the above.

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Definitions:

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period, before any purchases or sales have occurred.

Accounts Receivable Turnover

A financial ratio measuring how many times a company collects its average accounts receivable balance within a certain period.

Average Accounts Receivable

An accounting metric that represents the average amount of money owed to a company by its customers over a specific time period.

Net Sales

The amount of sales generated by a company after deductions for returns, allowances for damaged or missing goods, and discounts.