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:

Revenue Recognition

The principle that dictates the specific conditions under which revenue is recognized and recorded in the accounts.

Realization of Revenue

The realization of revenue occurs when a company has earned its revenue—typically through the delivery of goods or services—and it can be recognized on the financial statements.

Financial Statements

Financial statements are records that convey the business activities and the financial performance of a company, typically including the balance sheet, income statement, and cash flow statement.