When Managers Set and Measure Target Levels of Performance and Feedback

question 27

Multiple Choice

When managers set and measure target levels of performance and feedback, ________.

• A) the historical-cost-based accounting measures are usually adequate for evaluating economic returns on new investments
• B) the historical-cost ROIs cannot be used to evaluate current performance
• C) the timing of feedback is not dependent on the sophistication of the organization's information technology
• D) how critical the information is for success of the organization and the management level receiving the feedback

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Definitions:

Moral Principles

Fundamental beliefs regarding right and wrong behavior that guide an individual's actions and decisions.

Multiple Means

Refers to having various methods or ways to achieve a particular end.

Error Management Theory

A theoretical framework suggesting that humans have evolved biases in judgment and decision-making processes to minimize costly errors.

Omission Bias

Omission bias is the tendency to favor an act of omission (not doing something) over one of commission (doing something), often due to the fear of making a wrong choice.