Which of the Following Is Not What an Effective Performance

question 33

Multiple Choice

Which of the following is not what an effective performance measurement system should do?

• A) Align top-level strategic objectives and bottom-level initiatives.
• B) Identify opportunities in a timely fashion.
• C) Determine priorities and allocate resources based on those priorities.
• D) Maintain measurement when the underlying processes and strategies change.

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Definitions:

Compensating Balances

Minimum balance requirements imposed by banks on certain accounts, which businesses must maintain in order to receive some form of credit or service.

Prompt Payment Discounts

Incentives provided by sellers to encourage buyers to pay their invoices early.

Quantity Discounts

Price reductions offered to buyers purchasing in large volumes.

Collection Expenditures

Expenses associated with collecting payments from customers, including billing, mailing, and legal costs.