Which of the Following Statements Is TRUE About Performance Reporting

question 66

Multiple Choice

Which of the following statements is TRUE about performance reporting?

• A) Reports should focus on whom to blame for unfavorable variances.
• B) Managers should not be held accountable for uncontrollable variances.
• C) Only unfavorable variances need to be explained.
• D) Every variance, regardless of magnitude, must be investigated.

---

Definitions:

Consistency

The quality of being predictable, reliable, and steady over time.

Discounting Principle

A concept in psychology which suggests that when there are multiple causes for a behavior, the importance or contribution of any single cause is reduced.

Potential Cause

An element or factor that might bring about a certain effect or outcome, not yet proven as the definitive cause.

Covariation Principle

A concept in social psychology indicating that behavior is attributed to potential causes that co-occur consistently with the observed effect.