Which of the Following Statements Is FALSE About Performance Metrics

question 105

Multiple Choice

Which of the following statements is FALSE about performance metrics?

• A) The cost benefit criterion leads companies to rely on imperfect, low-cost performance metrics.
• B) The more a manager's reward depends on a performance metric, the more incentive the manager has to take actions to maximize that measure.
• C) Top management should define the performance metric to promote goal congruence and base enough reward on it to achieve managerial effort.
• D) The more uncontrollable factors affect a manager's reward, the less risk the manager bears.

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Definitions:

Free-stroke Limit

The maximum allowable distance a linkage or component (such as a clutch pedal) can move without engaging or affecting the operation of the mechanism.

Clamp-type

A fastening device or mechanism that holds objects tightly together to prevent movement or separation, utilizing a clamping action.

Long-stroke

Describes an engine or piston movement with a longer distance traveled within the cylinder, affecting power and efficiency.

Brake Drums

Components of a drum brake system which rotate with the wheel and where the brake shoes press against to stop the vehicle.