The Best Use of Performance Measurement Systems with Several Variables

question 12

Multiple Choice

The best use of performance measurement systems with several variables would be obtained by the development of ___ ___ ___ ___ of relationships between variables.

• A) analysis of variance models
• B) variance and analysis models
• C) cause and effect models
• D)sensitivity and polarity models

---

Definitions:

Common Input

A resource, such as raw materials or labor, that is shared among different processes or production lines within manufacturing or service delivery.

Further Processing

Additional operations carried out on a product to enhance its value before final sale.

Split-off Point

The stage in a production process where multiple products are generated from a common input and can further be processed or sold separately.

Joint Processing Costs

Expenses incurred during the processing of two or more products simultaneously before they are separable.