Which of the Following Is True of Performance Standards

question 57

Multiple Choice

Which of the following is true of performance standards?

• A)Performance standards are not measurable in nature.
• B)Performance standards need not be tied to a specific time period.
• C)At the product-market level,performance standards include sales and market-share determinants.
• D)Performance-based measures tied to the compensation of those individuals responsible for attaining the specified goals may be detrimental to the firm in the short term.

---

Definitions:

Salary Workers

Employees who are paid a fixed amount of money or salary, rather than being paid hourly.

Productivity

The measure of efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Efficiency

The extent to which resources are used in the best possible way to produce goods and services.

Labor Turnover

The rate at which employees leave a company and are replaced by new employees, often used as a measure of a company's stability and employee satisfaction.