If Fairness Only Is Considered, If a Unit Manager's Unit

question 14

Multiple Choice

If fairness only is considered, if a unit manager's unit is doing well, the unit manager prefers:

• A) Not to be evaluated.
• B) A subjective measure.
• C) An informal evaluation.
• D) A firm-wide pool over a unit-based pool.
• E) A unit-based pool over a firm-wide pool.

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Definitions:

Accounts Payable

The amount of money a company owes its suppliers for goods and services purchased on credit.

Accounts Receivable

Financial dues from customers to a firm for goods or services that have been dispensed or availed but remain unpaid.

Inventory

An accounting term referring to goods and materials held by a business for the purpose of sale or production.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.