Which of the Following Statements Is(are)false Regarding Financial Measures

question 66

Multiple Choice

Which of the following statements is(are) false regarding financial measures?
(A) In general,the use of multiple measures to evaluate performance is better than the use of a single performance measure.
(B) Managers evaluated using multiple measures will most likely act differently than managers evaluated using single measures.

• A) Only A is false.
• B) Only B is false.
• C) Both A and B are false.
• D) Neither A nor B is false.

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Definitions:

High-low Method

A method employed in managerial accounting that estimates variable and fixed costs by analyzing the most and least active periods.

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating the portion of sales available to cover fixed costs and generate profit.

Units Sold

The total number of units of product that have been sold during a particular period.

High-low Method

A way to estimate the variable and fixed components of costs by analyzing the difference in costs between the highest and lowest activity levels.