Question

In: Accounting

All the following are methods of comparison used in performance measurement. Which are inadequate as contemporary...

All the following are methods of comparison used in performance measurement. Which are inadequate as contemporary measures?
1) Standard costs.
2) Past periods.
3) Budget targets.
4) Benchmarking.

a.

1, 2 and 4.

b.

2, 3 and 4.

c.

1, 3 and 4.

d.

1, 2 and 3.

Solutions

Expert Solution

  1. Standard Costing : It is the practice of using expected costs instead of actual costs and periodically recording variances to show the difference between expected and actual costs.
    It is inadeqaute becasue of the numerous assumptions taken while formulating an expected cost/revenue that may not be viable in real life
  2. Past Period: Here we use actual costs/revenue that have been incurred in the past to compare current year performance.
    It is inadequate because Past periods cannot be an effective performance measure due to change in market structures, economy, Costs overall etc.
  3. Budget Targets: In this performance is measured on the basis of if actual performance is able to achieve a predetermined budgeted target for the year.
    It is inadequate due to potential discrepencies in setting up the budget level. What assumption have been taken to arrive on the budgeted targets and are they justified ?
  4. Benchmaring : It compares the performance of similar companies/competitors in the same market and then determined the performnace dependning on or in comparison of industry performnace.

    It is adequate , because benchmarking inadvertendly takes into account macro-level factors that might impact the working and helps determine if you are doing good enough according to the market scenario.

Thus the correct answer is d.


Related Solutions

Discuss performance measurement systems that are used by different parts of the supply chain. Which one...
Discuss performance measurement systems that are used by different parts of the supply chain. Which one do you believe is the most effective/accurate? Why or Why not?
which of the following describes the define the work scope step in building a performance measurement...
which of the following describes the define the work scope step in building a performance measurement baseline? the. budget must be allocated before it is possible to define the work space the work scope is held in management reserve until it is defined the schedule must be developed before it is possible to define the work space the contractor uses the contract statement of work as a key scope defining document
What type of performance measurement is used to evalute employees in public schools?
What type of performance measurement is used to evalute employees in public schools?
Q1 Which of the following are NOT tests which are used to assess the performance of...
Q1 Which of the following are NOT tests which are used to assess the performance of astabilization or solidification process? a. corrosion test b. EP TOX c. paint filter test d. TCLP Q2 Given that you receive a dose of radiation of 1 milli-rad, the highest tissue damage wouldresult if the radiation adsorbed was in the form of: a. Alpha b. Beta c. Gamma d. X-rays e. all the same Q3 When a radioactive isotope decays by emission of an...
What are the various methods used for comparison during the evaluation of concept? Explain briefly.
What are the various methods used for comparison during the evaluation of concept? Explain briefly.
outline at least four criteria that should be used to evaluate approaches to performance measurement, and...
outline at least four criteria that should be used to evaluate approaches to performance measurement, and critically evaluate one approach using the criteria you specified. Which of the four criteria you identified do you consider the most and least important? What are the benefits and limitations of the performance measurement approach you chose, according to these criteria?
Discuss FIVE (5) tools to be used for the performance measurement in Malaysia Airlines Bhd.
Discuss FIVE (5) tools to be used for the performance measurement in Malaysia Airlines Bhd.
Which of the following is FALSE about 'measurement'? -Measurement is a procedure in which an unknown...
Which of the following is FALSE about 'measurement'? -Measurement is a procedure in which an unknown quantity is compared with a known standard -A measurement is accurate when it is absent of random errors -In a measurement process, precision is the degree of repeatability -A measurement is accurate when it is absent of systematic errors -Good precision means that random errors in the measurement are minimized
16. Which of the following is not a category for performance measures used for a balanced...
16. Which of the following is not a category for performance measures used for a balanced scorecard? a. Financial b. Customer c. Internal business processes d. Regulatory 17. In a survey of global business executives, what percentage did Bain & Company find were using a balanced Scorecard? a. Almost 50% b. Almost 70% c. Almost 75% d. Almost 25% 18. Just-in-time inventory management (JIT) is an inventory strategy that focuses on a. performance measures. b. reducing waste and inefficiency. c. getting the right product to the right...
The healthcare quality management consists Measurement performance which includes measurement,assessment,improvement. Describe the Assessment phase in the...
The healthcare quality management consists Measurement performance which includes measurement,assessment,improvement. Describe the Assessment phase in the Cycle of Measurement, Assessment, and Improvement. What is the question it asks? Give a healthcare example. please give correct answer.required one page answer.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT