Which of the Following Is True Concerning the Measurement of Performance

question 25

Multiple Choice

Which of the following is true concerning the measurement of performance?

• A) Qualitative standards are easier to measure than quantitative standards.
• B) Quantitative standards and data can be measured objectively.
• C) Qualitative standards are not open to human interpretation.
• D) Only quantitative data should be measured for a company to improve its performance.

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular period, used in budget control and analysis.

Patient-Visits

The number of times patients visit a healthcare provider or facility for treatment or consultation.

Static Budget

A budget that does not change or adjust in response to variations in business activity levels.

Overhead Cost

Expenses related to the day-to-day running of a business that are not directly tied to a specific product or service.