Managerial myopia is the distortion in incentives that result from using accounting measures to evaluate performance.

Question

Quizplus · Accepted Answer

Managerial myopia occurs when managers focus too much on short-term accounting measures in order to improve their performance evaluations rather than making decisions that consider the long-term health and sustainability of the company. This can lead to decisions that benefit the manager personally in the short-term but may ultimately harm the company.

Managerial Myopia Is the Distortion in Incentives That Result from Using