Which of the Following Is Not Indicated as an Advantage

question 146

Multiple Choice

Which of the following is not indicated as an advantage of using nonfinancial performance measures, relative to financial performance measures, as part of an operational control system?

• A) Nonfinancial performance indicators are readily understandable by operating personnel.
• B) Nonfinancial performance indicators can be viewed as drivers of future financial performance.
• C) Nonfinancial performance indicators direct attention to precise problem areas that need attention.
• D) Nonfinancial performance measures are more reliable than financial performance measures.

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Definitions:

Reactivity

The phenomenon wherein subjects alter their performance or behavior due to the awareness that they are being observed.

Convergent Validity

Convergent validity is the extent to which two measures of constructs that theoretically should be related, are in fact related.

Cronbach's Alpha

A measure of internal consistency that assesses how closely related a set of items are as a group, often used in survey research.

Internal Consistency

A measure of the reliability of a psychological test that assesses the extent to which different test items that propose to measure the same general construct produce similar results.