A good performance measurement system should evaluate:
A)Profitability only
B)Customer satisfaction only
C)Those aspects of a unit's performance that are subject to its control
D)Those aspects of a unit's performance whether controllable or not

Question

Quizplus · Accepted Answer

A good performance measurement system should evaluate those aspects of a unit's performance that are subject to its control. This means that the system should focus on the unit's ability to achieve its goals through the effective use of its resources and capabilities rather than on external factors that may be beyond its control. By measuring performance based on controllable factors, management can take corrective action to improve future performance. Evaluating factors beyond the unit's control, such as overall market conditions, would not provide useful information for this purpose.

A Good Performance Measurement System Should Evaluate