Which of the Following True of Nonfinancial Measures of Quality

question 27

Multiple Choice

Which of the following true of nonfinancial measures of quality?

• A) They direct attention to financial processes that help managers identify the precise problem areas that need improvement.
• B) They focus managers' attention on how poor quality affects operating income.
• C) They assist in problem solving by comparing costs and benefits of different quality-improvement programs and by setting priorities for cost reduction.
• D) They provide immediate short-run feedback on whether quality-improvement efforts are succeeding.

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Definitions:

Compensation

Payment or rewards given to employees or workers for their services, which can include wages, salaries, benefits, and bonuses.

Money Managers

Professionals who make investment decisions and manage the portfolio of securities for their clients.

Alpha

A measure of the active return on an investment, indicating how much a portfolio has outperformed or underperformed its benchmark index.

CAPM

The Capital Asset Pricing Model, a theory that describes the relationship between the risk of a security and its expected return.