Which of the Following Statements About Performance Evaluation Is True

question 32

Multiple Choice

Which of the following statements about performance evaluation is true?

• A)Nonfinancial measures are less useful than financial measures because they are not as objective
• B)Financial measures are less useful than nonfinancial measures because they are biased
• C)A combination of financial and nonfinancial measures gives a more useful picture of organizational performance than either one alone
• D)Only one or two nonfinancial performance measures should be used

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Definitions:

Price Increase

Refers to a situation where the cost of goods or services rises over a period of time.

Total Utility Data

Information that represents the total satisfaction received from consuming a certain amount of goods or services.

Money Income

The total amount of monetary earnings or receipts accruing to an individual or household before taxes and other deductions.

Rational Consumer

An individual who makes purchase decisions that maximize their utility, given their budget constraints.