What Is the Major Disadvantage of the Performance Measurement System

question 49

Multiple Choice

What is the major disadvantage of the performance measurement system?

• A)It may be manipulated to allow continuation of the actions that best fulfill his/her reading of the system goals.
• B)A person might cheat on the measurement system by exploiting its weaknesses in hopes of advancement.
• C)It "takes underground" constructive dialogue about system goals or modifications in system measurements.
• D)A person acts in a way that optimizes his/her performance measurements without realizing that this outcome was not what the system intended.

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Understand the conditions for economic profits and losses within purely competitive firms.

Identify the characteristics and implications of constant-cost, increasing-cost, and decreasing-cost industries.

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