Which of the Following Is True of Performance Measurement

question 88

Multiple Choice

Which of the following is true of performance measurement?

• A) Preferred performance measures do not change much with changes in factors that are beyond manager's control.
• B) Sensitive performance measures increases the cost of providing incentives.
• C) Less-sensitive performance measures induce managers to improve.
• D) Managers' performances should be evaluated based on the financial measures such as residual income and economic value added.