An example of a performance measure with a long-run time horizon is:
A)direct materials efficiency variances
B)overhead spending variances
C)number of new patents developed
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

The number of new patents developed requires a long-run time horizon as the process of research, development, and patent approval can take several years. Direct materials efficiency variances and overhead spending variances are more short-term measures that focus on immediate cost control and efficiency.

An Example of a Performance Measure with a Long-Run Time