The Performance Measurement System Lets Upper Management Know Whether the Subunits

question 135

Multiple Choice

The performance measurement system lets upper management know whether the subunits are achieving their goals and targets or not. This statement reflects which of the following performance measurement goals?

• A) Motivating unit managers
• B) Communicating expectations
• C) Providing feedback
• D) Motivating managers

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Definitions:

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to related products and services based on the activities they require.

Resource Consumption

The act of using resources, such as materials, time, and energy, in the process of producing goods and services.

Activity-Based Costing

Activity-based costing is an accounting method that assigns costs to products and services based on the activities and resources that go into producing them.

Equipment Depreciation

The allocation of the cost of physical assets over its useful life, recognizing wear and tear over time.