The Limitations of Financial Performance Measures ________

question 48

Multiple Choice

The limitations of financial performance measures ________.

• A) lead management to use accelerated depreciation methods
• B) make it easy for companies to create goal congruence
• C) lead management to use the net book value of assets
• D) can be overcome by taking a broader view of performance with a balanced scorecard

---

Definitions:

Economic Harm

Financial or monetary damage suffered by an individual, organization, or economy due to certain actions, events, or policies.

Pecuniary Harm

Financial damage suffered by an individual or entity, referring to actual losses of money or property.

Economic Loss

A financial deficit suffered by a person or entity, often measured as the difference between actual earnings and expected earnings.

Trespass to Real Property

An unlawful entry onto land by a person without the permission of the owner, resulting in a legal violation.