What method is particularly appropriate for measuring and rewarding the performance of top SBU managers and group-level executives when performance factors and their importance vary from one SBU to another?
A) return on investment
B) year-end bonuses
C) zero base budgeting
D) weighted-factor method
E) return on assets

Question

Quizplus · Accepted Answer

The weighted-factor method is particularly appropriate in cases where performance factors and their importance vary from one SBU (Strategic Business Unit) to another. This method involves identifying the key performance factors for each SBU, weighting them based on their importance, and then evaluating SBU managers and group-level executives based on their performance on those factors. This allows for a more customized and fair approach to measuring and rewarding performance across different SBUs.

What Method Is Particularly Appropriate for Measuring and Rewarding the Performance