Which of These Is a Potential Problem Associated with Using

question 96

Multiple Choice

Which of these is a potential problem associated with using only quantitative criteria for selecting strategies?

• A) Most quantitative criteria are geared to long-term objectives rather than annual objectives.
• B) Different accounting methods can provide different results on many quantitative criteria.
• C) Intuitive judgments are never used in deriving quantitative criteria.
• D) Quantitative criteria include human factors that may be underlying causes of declining performance.
• E) Quantitative criteria are not able to compare the firm's performance over different period of time.

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Definitions:

Consumer Surplus

The difference in the total funds consumers are willing and able to disburse for a good or service compared to the actual expenditure.

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service to satisfy their needs or desires.

Camera

A device that records or captures images, which can be stored, viewed directly, or transmitted to another location.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually do pay.