The Benefits of Tying Performance Measures More Closely to a Manager's

question 54

Multiple Choice

The benefits of tying performance measures more closely to a manager's efforts encourage the use of

• A)financial measures.
• B)nonfinancial measures.
• C)nonfinancial and financial measures.
• D)performance input measures.
• E)moral measures.

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Definitions:

Forward Contract

A financial derivative contract between two parties to buy or sell an asset at a predetermined future date for a price that is agreed upon today.

Contingent Liability

A potential financial obligation that depends on a future event arising from past transactions or events.

Probable

In financial and legal contexts, a high likelihood that an event will occur, often used in reference to the realization of assets or the incurrence of liabilities.

Reasonably Estimated

A valuation or measurement that can be calculated with a reasonable level of accuracy, often applied in accounting for provisions and contingencies.