Tying performance measures more closely to a manager's efforts:
A)normally requires the use of non-financial measures.
B)results in the salary component of compensation dominating the total compensation package.
C)results in a strict use of financial ratios.
D)Both A and C are correct.

Question

Quizplus · Accepted Answer

Tying performance measures more closely to a manager's efforts normally requires the use of non-financial measures. This is because financial measures alone may not capture all aspects of a manager's performance, and non-financial measures can provide a more holistic view of performance. While financial ratios may be used as one of several performance measures, a strict use of financial ratios alone would not be sufficient to tie performance measures more closely to a manager's efforts. The statement regarding the salary component dominating the total compensation package is not directly related to tying performance measures to a manager's efforts.

Tying Performance Measures More Closely to a Manager's Efforts