Which of the Following Features Make Stretch Targets Feasible

question 96

Multiple Choice

Which of the following features make stretch targets feasible?

• A)The targets are set in isolation by top management.
• B)The measures are linked by causal relationships.
• C)The measures are based on currently attainable standard costs.
• D)The targets are set at desired levels for twenty years to ensure long-term performance.

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Definitions:

Inventory Turnover Ratio

An asset management ratio that indicates how quickly inventory moves off the shelf and therefore how well a company sells its product.

Inventory Turns

Measures how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.

Dollar Amount

The numerical monetary value or total assigned to a transaction, account, or asset.

Inventory Turnover Ratio

A measure of how efficiently a company turns its inventory into sales by comparing cost of goods sold to average inventory for a period.