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:

Economic Security

The condition of having stable income or other resources to support a standard of living now and in the foreseeable future.

Birth Control

Methods or devices used to prevent pregnancy, including a wide range of hormonal, barrier, and natural techniques.

Economically Depleted

A situation where a resource becomes scarce or costly to extract or harvest, making it no longer viable or profitable.

Common-Property Approach

A management principle treating resources as collective assets to be shared and used by a community or society rather than privately owned.