Which of the following statements regarding management control principles is false?
A) Always expect that individuals will be pulled in the direction of their own self-interest.
B) Design incentives so that individuals who pursue their own self-interest are also achieving the organization's objectives.
C) Evaluate actual performance based on expected or planned performance.
D) Consider financial performance over nonfinancial performance.

Question

Quizplus · Accepted Answer

The statement "consider financial performance over nonfinancial performance" is false. Management control principles should consider both financial and nonfinancial performance measures to evaluate overall performance and ensure alignment with organizational objectives.

Which of the Following Statements Regarding Management Control Principles Is