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.

Question

Quizplus · Accepted Answer

Preferred performance measures should not change significantly with factors beyond a manager's control to ensure that the evaluation reflects the manager's actual performance and decision-making abilities.

Which of the Following Is True of Performance Measurement