Which of the Following Statements Comparing Activity-Based Performance and Strategic-Based

question 68

Multiple Choice

Which of the following statements comparing activity-based performance and strategic-based performance evaluation is NOT true?

• A)Strategic-based performance evaluation expands the set of metrics.
• B)Only strategic-based performance evaluation leads to cost reductions.
• C)Only strategic-based performance standards set stretch targets for all four perspectives.
• D)Both systems encourage quality improvements.

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Definitions:

Fixed Asset Turnover Ratio

A financial metric that measures how efficiently a company uses its fixed assets to generate sales, calculated as sales divided by the average net fixed assets.

Book Value

The net value of a company's assets found on its balance sheet, and is calculated by subtracting liabilities from the total value of assets.

Trade-In Allowance

The amount credited to a customer for the trade-in of a used item towards the purchase of a new item.

Book Value

The net value of an asset reported in the financial statements, calculated as the original cost minus any depreciation, amortization, or impairment costs.