Subjective performance evaluation can be useful when:
A) Important aspects of performance are difficult to measure.
B) Evaluating start-up businesses that show large accounting losses in early years.
C) A responsibility center experiences a large and unforeseen event.
D) All of the above would argue for subjective evaluations.

Question

Quizplus · Accepted Answer

Subjective performance evaluations are particularly useful in scenarios where important aspects of performance are difficult to measure, in evaluating start-up businesses that may not yet show profit but have potential, and when unforeseen events affect a responsibility center's performance, making objective measures less reliable.

Subjective Performance Evaluation Can Be Useful When