Which of the Following Is True About the Results Approach

question 37

Multiple Choice

Which of the following is true about the results approach to performance management?

• A)The results approach relies primarily on a combination of the attribute and results approaches to performance measurement.
• B)The results approach virtually eliminates problems of leniency,central tendency,and strictness.
• C)The techniques of the results approach usually have very little congruence with the company's strategy.
• D)The results approach is usually highly unacceptable to both managers and employees.
• E)The results approach minimizes subjectivity,relying on objective,quantifiable indicators of performance.

Determine the total manufacturing cost variance and its components.

Analyze the reasons behind separating standard costs into price and quantity components.

Understand the concepts of direct materials quantity variance and factors affecting it.

Understand how to calculate direct labor variance, including labor rate and time variance.

---

Definitions:

Full Disclosure Principle

A financial reporting guideline requiring companies to disclose all relevant and necessary information in their financial statements and footnotes to help users make well-informed decisions.

Financial Statements

Official documentation reflecting the monetary transactions and status of a company, individual, or different entity.

Accounting Equation

A fundamental principle of accounting that maintains that assets are always equal to the sum of liabilities plus equity (Assets = Liabilities + Equity).

Accounting Equation

The accounting equation represents the relationship between a company's assets, liabilities, and equity, illustrating that assets are funded by borrowing (liabilities) or investing (equity).