What the First Step in Selecting Appropriate Performance Measures

question 155

Multiple Choice

What the first step in selecting appropriate performance measures?

• A)Decide on the level of relevance and urgency of feedback.
• B)Decide on measurement alternatives for each performance measure.
• C)Decide on components n each performance measure.
• D)Decide on criteria targets against which to measure performance.
• E)Identify and align accounting performance measures with financial goals.

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Definitions:

Cash Dividends

The distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Cash Payments

Transactions involving the transfer of actual cash from one party to another, often for goods or services rendered.

Dividends Payable

Liabilities that represent a company's obligation to pay its shareholders dividends declared by its board.

Statement of Cash Flows

A statement that outlines the influence of balance sheet and income modifications on the status of cash and cash equivalents, divided by the categories of operational, investment, and financial activities.