"You Get What You Measure!" Refers to the Relationship Between

question 40

Multiple Choice

"You get what you measure!" refers to the relationship between

• A)managerial accounting and financial accounting.
• B)ethical and unethical behavior.
• C)duties of the CEO and duties of the controller.
• D)performance measures and actions of managers.

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Definitions:

Coase Theorem

A principle that asserts that if property rights are well-defined and transaction costs are negligible, parties will negotiate to correct externalities and allocate resources efficiently.

Private Market

A private market is a part of the financial market in which investments are negotiated directly between parties, without public market listing.

Externalities

Unintended outcomes from business transactions impacting external groups, not included in the product or service pricing.

Coase Theorem

A principle that asserts that when trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property.