Identify Which of the Following Statements Should Guide the Design

question 41

Multiple Choice

Identify which of the following statements should guide the design of management control systems.

• A) Always expect that individuals will act selflessly.
• B) Consider both financial performance and nonfinancial performance.
• C) Concentrate performance measures at the most critical points in the value chain.
• D) Design incentives so that individuals who pursue their own self- interest are also achieving the organization's objectives.

---

Definitions:

Producers

Individuals or companies that create goods or services for sale to consumers or other businesses.

Production

The process of creating goods or services by combining labor, capital, and natural resources to meet consumer demand.

Technological Advance

The discovery of new technologies or the improvement of existing ones, significantly altering the way goods or services are produced.

Digital Video Recorders

Electronic devices that record video in a digital format to a disk drive, USB flash drive, SD memory card, or other local or networked mass storage device.