Which of the following terms best describes a piece of information on which an incentive contract (explicit or implicit)can be based?
A)Absolute Performance
B)Relative Performance
C)Incentive
D)Performance measure
E)Performance standard

Question

Quizplus · Accepted Answer

A performance measure is a specific piece of information that can be used to determine whether an individual or group has met a certain standard or goal. It is typically used as the basis for setting up an incentive contract, where rewards are given for meeting or exceeding the performance measure. Examples of performance measures include sales revenue, customer satisfaction ratings, and productivity levels.

Which of the Following Terms Best Describes a Piece of Information