A Good Performance Measurement System Should Evaluate

question 60

Multiple Choice

A good performance measurement system should evaluate:

• A)Profitability only
• B)Customer satisfaction only
• C)Those aspects of a unit's performance that are subject to its control
• D)Those aspects of a unit's performance whether controllable or not

---

Definitions:

Finished Goods Inventory

The inventory of completed products that are ready to be sold by a company.

Production Runs

Production Runs refer to the set periods of time during which a specific production process is executed, often characterized by the quantity of output produced.

Manufacturing Overhead

All manufacturing costs that are not direct materials or direct labor, which include expenses such as rent, utilities, and salaries for supervisors.

Activity-Based Costing

Activity-Based Costing (ABC) is a method of allocating overhead and indirect costs to specific products or activities based on their consumption of resources, assisting in more accurate product costing.