Which of the Following Statements Best Describes Performance Measurement in Line

question 21

Multiple Choice

Which of the following statements best describes performance measurement in line with continuous improvement?

• A) Firms select relevant performance measures.
• B) The measure will keep changing over time.
• C) The measure will keep improving over time.
• D) The firm targets an area to improve, moving the target until the desired outcome is achieved. The firm is then likely to target another area for improvement.

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Definitions:

Disbursement Basis

An accounting method where expenses are recorded when cash is paid out rather than when the expense is incurred.

Consolidation

The merging of assets, liabilities, and other financial items of two or more entities to form a single, combined financial statement.

Investment

Allocation of resources, usually money, in assets or projects expected to generate income or profit in the future.

Expenditure

The action of spending funds or expenses incurred by an entity in the course of its operations.