In establishing performance measures and compensation policy, the issues are interdependent and the decision maker may proceed through a series of decisions several times before selecting the performance measure(s).

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Quizplus · Accepted Answer

The statement is true, as the selection of performance measures and compensation policy is a complex and iterative process that requires several rounds of decision-making and evaluation before a final decision can be made. The interdependence of these issues means that changes in one area can impact the other, requiring the decision-maker to revisit their choices and re-evaluate their decisions multiple times before settling on the best measure(s) for the organization.

In Establishing Performance Measures and Compensation Policy, the Issues Are