When Managers Set and Measure Target Levels of Performance

question 71

Multiple Choice

When managers set and measure target levels of performance

• A)historical-cost-based accounting measures are usually adequate for evaluating economic returns on new investments.
• B)historical-cost ROIs cannot be used to evaluate current performance.
• C)the timing of feedback is not dependent on the sophistication of the organization's information technology.
• D)the timing of feedback depends on the specific level of management receiving the feedback.

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Definitions:

Profit-maximizes

A strategy or approach by businesses aimed at achieving the highest possible profit.

Marginal Cost Price

The expenditure incurred when one more unit of a product or service is produced.

Quantity

The amount or number of a product or service that is available or demanded in the market.

Economic Profits

The gap between a company's overall income and its combined direct and indirect expenses.