The Extent to Which the Performance Measure Gives Guidance to Employees

question 51

Multiple Choice

The extent to which the performance measure gives guidance to employees about what is expected of them is called _____.

• A)reliability
• B)validity
• C)specificity
• D)acceptability
• E)strategic congruence

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Definitions:

Expense Accounts

Expense accounts are used in accounting to track money spent or costs incurred in a company's operations.

Retained Earnings

Earnings not paid out as dividends but instead reinvested in the company or used to pay off debt.

Total Assets

The combined value of everything a company owns, both current and non-current, as reported in the balance sheet.

Total Revenues

The total amount of income generated by the sale of goods or services before any expenses are subtracted.