If management takes a multiple-year view in the decision model and judges success according to the current year's results, a problem will occur in the
A)decision model.
B)performance evaluation model.
C)production evaluation model.
D)year-end review model.
E)responsibility centre allocation.

Question

Quizplus · Accepted Answer

If management takes a multiple-year view in the decision model but judges success based on the current year's results, it creates a problem in the performance evaluation model. This is because decisions made in one year can have an impact on the company's performance in subsequent years, and judging success only based on current year's results could lead to incorrect evaluation of decision-making effectiveness.

If Management Takes a Multiple-Year View in the Decision Model