One of the Following Is Not a Desirable Feature of a Performance

question 34

Multiple Choice

One of the following is not a desirable feature of a Performance Management System (PMS) :

• A)Must be consistent with strategy
• B)Must be consistent with the objectives of an organization
• C)Must be consistent with the system of feedback and review
• D)Must not include non-financial measures

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Definitions:

Fixed Costs

Costs that remain constant regardless of a company's operational levels, including rent, wages, and insurance fees.

Absorption Costing

An approach for assigning costs to a product that integrates all aspects of manufacturing expenses, from direct materials and labor to both types of overheads - fixed and variable.

Direct Materials

Direct materials are raw materials that can be directly attributed to the production of specific goods or services.

Variable Overhead

Costs that change in proportion to the level of production or business activity, such as utilities or raw materials.