Using a single performance evaluation criterion for an investment center
A)is most effective because a manager can concentrate on a single goal.
B)can result in manipulation of the performance measure.
C)allows multinational investment centers' performances to be equitably compared.
D)is only appropriate if the criterion is non-monetary.

Question

Quizplus · Accepted Answer

Using a single performance evaluation criterion for an investment center can result in manipulation of the performance measure. Managers may focus solely on the criterion and neglect other important aspects of performance, or may manipulate data to make it appear that they are meeting or exceeding the goal. Using multiple performance measures can provide a more comprehensive assessment of an investment center's performance.

Using a Single Performance Evaluation Criterion for an Investment Center