Internal Accounting Systems, Including Performance Measures, Affect Behavior

question 1

Multiple Choice

Internal accounting systems, including performance measures, affect behavior. It is often suggested that people pay attention to the dimensions of their work performance that are measured and rewarded. When, if ever, should these systems be revised?

• A)Extremely seldom: it is too costly
• B)Rarely: people understand how to perform under the present system
• C)Sometimes: whenever it can be shown that significant dysfunctional results exist
• D)Often: whenever management consultants develop a 'new and improved' system or measure
• E)Never

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