Which statement is FALSE about performance metrics?
A)The cost benefit criterion leads companies to rely on imperfect performance metrics.
B)The more a manager's reward depends on a performance metric,the more incentives the manager has to take actions to maximize that measure.
C)Top management should define the performance metric to promote goal congruence and base enough reward on it to achieve managerial effort.
D)The more uncontrollable factors affect a manager's reward,the less risk the manager bears.

Question

Quizplus · Accepted Answer

The statement "The more uncontrollable factors affect a manager's reward, the less risk the manager bears" is false. In reality, the more uncontrollable factors affect a manager's reward, the more risk the manager bears as they have less control over the outcome of the performance metric.

Which Statement Is FALSE About Performance Metrics