Which of the Following Is True of Performance Measurement

question 88

Multiple Choice

Which of the following is true of performance measurement?

• A) Preferred performance measures do not change much with changes in factors that are beyond manager's control.
• B) Sensitive performance measures increases the cost of providing incentives.
• C) Less-sensitive performance measures induce managers to improve.
• D) Managers' performances should be evaluated based on the financial measures such as residual income and economic value added.

---

Definitions:

Differentially Permeable Membrane

A membrane that selectively allows certain substances to pass through it while keeping others out.

Concentration Difference

The variation in the amount of a substance in two areas, which can lead to diffusion, where substances move from an area of high concentration to one of lower concentration.

Selectively Permeable

Property of the plasma membrane that allows some substances to pass, but prohibits the movement of others.

Osmosis

The movement of water across a semipermeable membrane from an area of lower solute concentration to an area of higher solute concentration.