Multiple Choice
Which of the following is true of performance measurement?
A) Preferred performance measures do not change much with changes in factors that are beyond manager's control.
B) Sensitive performance measures increases the cost of providing incentives.
C) Less-sensitive performance measures induce managers to improve.
D) Managers' performances should be evaluated based on the financial measures such as residual income and economic value added.
Correct Answer:
Verified
Correct Answer:
Verified
Q83: Times Corporation, whose tax rate is 30%,
Q84: When designing the steps in accounting-based performance
Q85: Economic value added, unlike residual income, charges
Q86: Bouvous Corporation had the following information for
Q87: Economic value added is equal to _.<br>A)
Q89: To calculate the value of fixed assets
Q90: In performance evaluations _.<br>A) managers should use
Q91: Coldbrook Company has two sources of funds:
Q92: Return on sales can provide how effectively
Q93: In an EVA calculation, the appropriate measure