When Management Is Using Performance Reports to Evaluate the Economic

question 77

Multiple Choice

When management is using performance reports to evaluate the economic performance of a business unit, which of the following costs should be considered?

• A) Any costs that are attributable to the business unit
• B) Costs that are both attributable to the business unit AND are controllable by the business unit manager
• C) Common costs and any costs that are attributable to the business unit
• D) Only costs controllable by the business unit manager

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Definitions:

Performance Based

A concept or strategy that involves evaluation and rewards based on the achievement of specific results or outcomes.

Grant Recipient

An individual or organization that receives funds from a grant-making entity to support specific projects or activities.

Outcome Goals

Objectives an organization or individual aims to achieve as a result of its activities, focusing on the end results or impacts.

Federal Grant Programs

Government initiatives that provide financial support to individuals, institutions, or governments for a specific purpose, often to fund projects or research.