Which of the Following Would Be a Financial Measure of Performance

question 31

Multiple Choice

Which of the following would be a financial measure of performance?

• A)Quarterly cash flows.
• B)Product defect rate.
• C)Customer satisfaction survey results.
• D)Percent of on-time deliveries.
• E)None of the above.

---

Definitions:

Forward Contact

A financial contract between two parties to buy or sell an asset at a specified future time at a price agreed upon today, often used for hedging foreign exchange risk.

Planned Purchase

A forecasted acquisition of goods or services that an individual or organization intends to make, often based on budget considerations or strategic planning.

Cash Flow Hedge

A type of hedge that protects against the variability in cash flows that is attributable to a particular risk associated with a recognized asset or liability or a highly probable forecasted transaction.

Fair Value Hedge

A type of hedge that is used to mitigate the risk of changes in the fair value of an asset or liability.