Performance analysis:
A) is based on qualitative factors, as contrasted with sales and cost analysis which are based on quantitative data.
B) is most useful in situations where the iceberg principal is not likely to be a concern.
C) indicates why problems have occurred and how to solve them.
D) may be based on several different performance indexes.
E) All of the above are true.

Question

Quizplus · Accepted Answer

Performance analysis may be based on several different performance indexes, such as productivity, efficiency, customer satisfaction, and employee engagement. The other options are either incorrect or incomplete. Choice A is incorrect because quantitative factors can also be considered in performance analysis. Choice B is incomplete because the "iceberg principle" is not fully explained. Choice C is incomplete because it does not mention that performance analysis also involves identifying strengths and opportunities for improvement, not just problems and solutions.

Performance Analysis