When Managers Set and Measure Target Levels of Performance and Feedback

question 27

Multiple Choice

When managers set and measure target levels of performance and feedback, ________.

• A) the historical-cost-based accounting measures are usually adequate for evaluating economic returns on new investments
• B) the historical-cost ROIs cannot be used to evaluate current performance
• C) the timing of feedback is not dependent on the sophistication of the organization's information technology
• D) how critical the information is for success of the organization and the management level receiving the feedback

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Definitions:

Liquidated

The process of converting assets into cash or paying off liabilities in the process of closing or restructuring a business.

Capital Balances

The amount of money in a company's accounts that represents the capital contributed by the owners or shareholders.

Capital Interest

The stake that a particular investor holds in the equity of a firm, often represented by the share of the company's capital owned by the investor.

Profits and Losses

Financial terms that represent the positive (profits) or negative (losses) financial outcomes of a business's operations over a particular period.